Implications of Cryptocurrencies on Financial Governance
In a recent publication in the China Economic Times, esteemed scholars Deng Jun and Zhang Shuyu delved into the significant implications of cryptocurrencies on international financial governance. Jun holds the position of deputy dean at the China School of Finance, part of the University of International Business and Economics, while Shuyu serves as an associate professor at Beijing Technology and Business University’s School of Economics. Their article argues that cryptocurrencies pose challenges that transcend mere technical hurdles or speculative investments; these digital currencies are fundamentally reshaping notions of sovereign credit, the structure of future monetary systems, and the overarching framework of global governance.
Proposed Framework for Digital Currency Governance
To navigate these rapid developments in digital currency, the authors propose the establishment of an inclusive and enforceable framework for worldwide digital currency governance. They suggest a threefold approach:
- Negotiate from points of mutual benefit to prevent polarization of ideologies.
- Develop a more adaptable governance structure that promotes international cooperation driven by a foundational consensus.
- Foster informal dialogues, academic collaboration, and partnerships among think tanks, thereby nurturing trust, which may enhance cooperative efforts in this complex arena.
