The world stands on the brink of radical changes in the global financial and currency systems. Russia, which has already demonstrated its role as a hacker state following its full-scale invasion of Ukraine, is now attempting to disrupt the existing global order in this domain. Its new ambitions focus on implementing the digital ruble, forging alliances with dictatorial regimes, and creating an alternative to SWIFT and the dollar monopoly.
These plans are part of a broader strategy to undermine traditional mechanisms of financial control and Western influence. Democratic nations, in turn, must respond to this challenge by modernizing the global economic architecture to make it resilient against the destabilizing actions of authoritarian regimes while addressing the needs of contemporary realities.
Following the failure of international institutions to prevent Russian aggression, Moscow has pivoted toward financial warfare. The launch of the digital ruble is not just a financial instrument but also a geopolitical gambit. Russia aims to build a new financial system that bypasses international sanctions, draws in authoritarian regimes, and offers an alternative to countries disillusioned with the current global order.
Digital currencies have become a cornerstone of this struggle. Unlike cryptocurrencies or electronic money, Central Bank Digital Currencies (CBDCs) are state-driven projects capable of granting governments complete control over financial flows.
While Russia attempts to rewrite the rules of financial engagement, the West is advancing rapidly into the sixth technological paradigm—a hybrid of informational and industrial technologies. Against this backdrop, traditional globalization is reaching its limits, giving way to a cluster model where economic and trade relationships are formed within blocs of like-minded countries.
WTO Director-General Ngozi Okonjo-Iweala has already warned of the risks of fragmentation into economic blocs, particularly in sectors such as semiconductors. This fragmentation could lead to a long-term decline in global GDP by up to 5%.
Russia, along with other authoritarian states such as Iran and Syria, views CBDCs as a tool to undermine the dollar’s dominance. However, a critical question remains: what will underpin this new system?
- Assets: The digital currency will likely be backed by physical gold or other metals.
- Industry: High-tech industries may play a central role in ensuring dominance over China.
- Natural Resources: Some Global South nations may prefer tying currencies to raw materials, but this approach risks empowering despotic regimes like Russia.
To craft an effective response, the democratic world must leverage its strengths, such as new energy sources, to shape the foundation of a future-proof financial system. The global financial system faces a serious challenge. The West’s response to Russia’s initiatives must be decisive and strategic. Transitioning to a new model of financial relations—one that ensures transparency, fairness, and resilience—is a critical task for the decades ahead. In this context, CBDCs may become not just tools of financial competition but also levers for restoring global balance.
Instead of succumbing to chaos and fragmentation, the global community must strive for a more stable and sustainable model of cooperation that guarantees stability and development in the future.
