The Geopolitics of Digital Money

Digital forms of money are transforming the global financial system. CBDCs, stablecoins and tokenised assets are also geopolitical instruments. This project examines their influence on the international monetary order.

Centre of Expertise Digital Operations & Finance

digitaal geld

Digital forms of money are rapidly transforming the global financial system. Innovations such as central bank digital currencies (CBDCs), stablecoins and tokenised assets are not only technological developments but also geopolitical instruments that may reshape international power relations. 

The project The Geopolitics of Digital Money examines how these developments influence the international monetary order and what they mean for Europe’s strategic position in the global financial system. 

Objective 

A key objective of the project is to develop future scenarios and a concrete policy roadmap for the European Union. The aim is to strengthen Europe’s strategic autonomy and enhance the international role of the euro, for example through initiatives such as the digital euro, safe assets, swap lines and payment and settlement infrastructures.  

Research question 

The global financial system is still largely dominated by the US dollar, which plays a central role in international trade, finance and payments. At the same time, the European Union remains heavily dependent on dollar financing and on American payment infrastructures . Meanwhile, China and private actors are developing alternative digital monetary systems. 

The project therefore addresses the question of what geopolitical risks and opportunities these developments create and what strategy the European Union should follow under different future scenarios.  

Approach 

The research combines several methods. These include a literature review, interviews with experts and scenario analysis. Based on these insights, the project develops a strategic roadmap for Europe.  

Results 

The project contributes to academic and policy discussions through policy papers, lectures and keynote presentations. In addition, a yearly conference is organised together with researchers and students to discuss developments in digital money and the geopolitical implications of financial innovation.  

Project duration 

Until 2030  

Target group

 Policymakers, finance specialists and researchers  

Project team 

Dr. Martijn van der Linden – Professor New Finance  

Commissioned by

 Talks and lectures at several institutions, including: 

  • De Nederlandsche Bank (DNB) 
  • European External Action Service (EEAS) 
  • Rijksuniversiteit Groningen (RUG) and Erasmus University Rotterdam (EUR) 

Partners 

Brussels Institute for Geopolitics  

Funding 

Research group New Finance  

Involved study programmes 

  • Faculty Business, Finance & Marketing
    Finance & Control 
    International Business 
  • Faculty Public Management, Law & Safety 
    International and European Law  

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