Integration of Blockchain into the Global Financial System: Forecast of M4 Growth and the Formation of a Decentralized Economy by 2035

Author: Mykhailo Bondar
Student of Vadym Hetman Kyiv National Economic University,
Graduate of Kyiv National Linguistic University
CEO of ITC Myvic Solutions LLC https://myvicsolutions.com/
Written on November 4, 2025, Kyiv, Ukraine

1. Introduction

The global financial system stands on the threshold of a new era, where the main regulator will no longer be the state or the World Bank, but the algorithmic consensus of communities united in global financial pools.
Blockchain technology is becoming more than just an accounting tool — it forms a new philosophy of trust, transparency, and autonomy.
Decentralized systems of financial interaction are transforming the principles of control, ownership, and distribution of value on a global scale.

At present, the global financial system is based on centralized management — through institutions such as the World Bank, the International Monetary Fund (IMF), and central banks.
These organizations define monetary policy, credit programs, currency restrictions, and the direction of capital flows.
However, blockchain disrupts this model by removing intermediaries and depriving traditional power structures of their monopoly over financial control.
These institutions are already making significant efforts to prevent the mass integration of blockchain into their sphere of influence — through legislation, regulatory barriers, and disinformation campaigns.
Yet, over time, they will lose control over the situation, and financial management will shift to decentralized communities operating within new digital ecosystems.

2. Evolution of the M4 Money Supply

The global M4 money supply, which in 2024 exceeds $600 trillion, may reach more than $1,200 trillion by 2035.
The growth of liquidity, the digitalization of transactions, and the expansion of virtual assets are leading to a gradual transition from traditional money to digital forms of capital.

By 2035, nearly one-third of global circulation could consist of digital money, including:

• CBDCs (Central Bank Digital Currencies) — digital currencies issued by central banks;
• Stablecoins — privately issued stable-value tokens;
• Tokenized assets — digitalized representations of real assets such as bonds, shares, and real estate.

Thus, M4 becomes not only an indicator of the volume of money but also a mirror of the global digital economy, where every transaction can be recorded on the blockchain.

3. Blockchain as the Core of Financial Unification

Blockchain serves as a universal standard of financial interaction, capable of uniting banks, corporations, states, and individuals into a single transparent ecosystem.
Unlike traditional financial structures, blockchain requires no intermediaries and has no central owner.

• All operations occur beyond national regulators, yet remain fully auditable and transparent.
• The system is self-regulating: verification, confirmation, and execution of transactions are performed automatically via smart contracts.
• No country in the world will be able to restrict financial flows within blockchain networks, as the data are stored simultaneously across thousands of independent nodes worldwide.

Blockchain creates an environment where trust is based not on state authority or banking institutions but on mathematical code.

4. Redistribution of Financial Control

Commissions, taxes, and profits currently received by states and banks will in the future be redistributed among network participants.
Instead of centralized tax and financial systems, there will emerge decentralized economic communities (DAOs) that independently establish rules, reward mechanisms, and transparent budgets.

By 2035, a significant portion of global transactions may occur outside the jurisdiction of individual states, with control transferred to global human pools — digital communities managing financial flows through algorithmic governance models.

This will represent a new form of financial democracy, in which each user becomes not only a consumer but also a co-owner and co-governor of the global economy.

5. Decentralized Model of Financial Governance

By 2035, Decentralized Autonomous Organizations (DAOs) will perform many functions traditionally managed by governments, such as:

• capital allocation,
• lending,
• insurance,
• investment,
• auditing and compliance.

These DAOs will operate on the basis of smart contracts, which automatically execute agreements without human intervention.
This will minimize corruption risks, bureaucracy, and inefficiency typical of traditional state systems.

6. The Global Financial System of 2035

The financial system of 2035 will resemble a network of interconnected blockchains, in which:

• each participant owns a share of the system;
• transactions are instantaneous and require no intermediaries;
• transparency is ensured mathematically, not politically;
• governance is collective, achieved through algorithmic consensus.

Such a system will be open, corruption-free, and stable, as it will no longer depend on political decisions or economic pressures from individual nations.

7. Blockchain’s Share in Global Finance

At present, blockchain-based assets and digital currencies represent approximately 0.5–0.9 % of total global financial assets, corresponding to a market capitalization of around $3–4 trillion when combining cryptocurrencies, tokenized securities, and decentralized finance (DeFi) instruments.
Although this share remains relatively small compared to the total value of the world’s M4 aggregate (estimated at over $450-600 trillion), it has been expanding steadily, outpacing the growth rates of traditional financial sectors.

By 2035, blockchain is expected to account for 8–10% of global financial flows and up to 15% of total financial assets as tokenization, digital currencies, and decentralized capital markets become mainstream.
This evolution will mark a structural shift from traditional financial intermediaries to algorithmic, peer-to-peer financial ecosystems, where value is exchanged, verified, and stored directly on distributed ledgers rather than within centralized institutions.

8. The Role of the Bitcoin Blockchain in Future Global Finance

There is a high probability that the Bitcoin blockchain will play a meaningful role in the architecture of future global finance.
Its network is the most secure and decentralized digital infrastructure ever created, supported by thousands of independent nodes and immense computational power.
Through continuous self-adjustment of mining difficulty and predictable issuance, Bitcoin has proven its long-term stability and resistance to manipulation.
While it may not replace national currencies, it is likely to serve as a reserve settlement layer or trust anchor within larger financial ecosystems, providing transparency and immutability for tokenized assets and cross-border transactions.
Its ability to scale through sidechains and layer-two solutions ensures adaptability, allowing the Bitcoin network to remain relevant in a rapidly evolving global economy.

9. Conclusions

Blockchain is not merely a technology but a new stage in the evolution of global finance.
It can ensure the unification, decentralization, and democratization of the world’s economic system.

Humanity may move from a model where finance is controlled by states to one where finance is governed by global communities — transparent, autonomous, and self-regulating.
Financial power will cease to be a monopoly and become distributed among all participants in the economic process.

In this new financial reality, individuals will gain genuine participation in global processes — not only the right to use money but also the ability to become its co-creator and custodian.