The Age of Financialisation: Bitcoin and the Prospects of a Democratised Monetary System

Abstract

This article investigates the implications of financialisaton on emerging economies and explores the potential of blockchain technology, specifically Bitcoin, as a tool for financial resilience and economic development. The study highlights how traditional financial systems and reliance on the US dollar for international trade exacerbate economic imbalances and restrict monetary sovereignty in developing countries. The analysis begins with an overview of the challenges posed by the current international monetary system, heavily influenced by dollar hegemony. We argue that the current financial system creates significant trade and capital flow imbalances. We discuss the critical role of financialisaton in these dynamics by showing a paradigm shift from production to finance in global socio-economic and political structures. The use of blockchain technology and cryptocurrencies, such as Bitcoin, is extensively discussed as potential alternative financial mechanisms capable of enhancing economic stability and autonomy. Blockchain technology provides the opportunity to facilitate cross-border transactions without the need for dollar conversion, reducing transaction costs and economic dependency on the dollar.