Fragmentation and Digitalization: Outlines of a Looming Bretton Woods 2.0
Keywords:
Bretton Woods 2.0 Digitalisation of Finance Multipolarity Systemic Fragmentation Bitcoin XRP Central Bank Digital Currencies (CBDCs)
Mirza Khidasheli
E-mail:Mirza.khidasheli@cue.edu.ge
Professor, Central University of Europe
Kutaisi, Georgia
https://orcid.org/0000-0002-7682-8109
Niko Chikhladze
E-mail: nikoloz.chikhladze@atsu.edu.ge
Professor, Akaki Tsereteli State University; Professor, Central University of Europe
Kutaisi, Georgia
https://orcid.org/0000-0002-2878-1836
ABSTRACT
The international monetary system faces the dual challenge of accelerating digitalization and deepening geopolitical multipolarity. These forces, while irreversible, also risk driving the world toward financial fragmentation if unmanaged. Historical precedent, from the gold standard to the original Bretton Woods and the rise of SWIFT, shows that market-born instruments often emerge to fill gaps in global settlement and reserve functions. Today, Bitcoin and XRP—though not state-designed—represent such instruments, arising organically from market adoption and technological evolution. This paper does not aim to prescribe a fixed blueprint for the future. Rather, its purpose is to outline the contours of an impending transition, drawing lessons from past monetary regimes while examining how digital assets and CBDCs may shape the architecture of a multipolar financial order. By highlighting both risks and opportunities, the paper seeks to promote informed discussion and encourage policymakers to prepare for the realities of a digital, multipolar monetary landscape before crises impose disorderly adjustments
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References
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Obstfeld, M. (2022). International monetary policy cooperation: Past, present, and future. IMF Economic Review, 70, pp. 387–426.
Ocampo, J., 2017. Resetting the international monetary (non)system. Oxford University Press.
Prasad, E., 2021. The future of money: How the digital revolution is transforming currencies and finance. Harvard University Press.
Reuters (2022). Cross-border payment politics. Retrieved from https://www.reuters.com
Rogoff, K., (2016). The curse of cash. Princeton University Press.
Sheng, A., & Geng, X. (2018). A digital currency should be adopted as the world’s leading reserve currency. World Economic Forum. Retrieved from https://www.weforum.org/stories/2018/04/from-dollar-to-e-sdr/
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Subacchi, P., (2020). The currency of power: The IMF and monetary cooperation. Columbia University Press.
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World gold supply statistics 2024. Retrieved from https://www.gold.org
World Gold Council. (2024). Gold demand trends 2024. Retrieved from https://www.gold.org
People’s Bank of China (PBoC) (2022). Progress of Research & Development of E-CNY in China. Retrieved from http://www.pbc.gov.cn/en/3688110/3688172/4174373/index.html
Published
2026-05-07
Section
Articles
This work is licensed under a Creative Commons Attribution 4.0 International License.
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