A Research On Bitcoin And The International Monetary System

With the development of Internet technology, an electronic currency called "Bitcoin" was created in 2008. A few years later, Bitcoin gained rapid development and has been widely accepted in the world. It has begun legal as a financial asset in the United States and Germany. The rise of Bitcoin is not by chance, it was born out of the people’s demand for the reform of the international monetary system. Although the “Bretton Woods system” was gone, there are still some basic problems unsolved. There are three major problems in our international monetary system. First, the US dollar is still the world’s most major international reserve currency. So the "Triffin dilemma " still exists. Secondly, governments expect the devaluation to improve the competitiveness of domestic enterprises. Finally, emerging market countries have little voting rights in IMF. By analyzing the characteristics of Bitcoin success, this paper provide recommendations for the reform of the international monetary system. There are four parts in this paper. The first part of the paper will describe the background The second part of the paper will describe what the Bitcoin is. The third part of the paper will discuss the problems in our international monetary system. At the last part, we will provide some suggestions for the reform of the international monetary system.