The modern international financial order is undergoing significant structural transformation driven by globalization and digital technological innovation. This paper analyzes this transformation from the perspective of “embedded liberalism,” which formed the foundation of the postwar order. This paper examines the history of how the Bretton Woods system achieved both international liberalization and domestic social stabilization through capital mobility restrictions, verifying that financial liberalization since the 1970s led to governance hollowing out. It then clarifies that while the rise of crypto assets demonstrates a “de-embedding” logic that circumvents centralization, it simultaneously triggers attempts at “re-embedding” through regulation. The risks of decentralized finance (DeFi) and regulatory fragmentation are difficult to address with conventional governance. Therefore, we conclude that transitioning to a “multi-layered governance model” where states, international institutions, and the protocol layer interact is essential for ensuring the stability of the future international financial order. This amounts to building a modern version of “embedded liberalism” that reconciles the freedom of technological innovation with social stability.
城穂 参川 (2025) studied this question.