400 | V19.I03 EXPLORING THE IMPACT OF CRYPTOCURRENCIES ON SHAPING GLOBAL TRADE AND ECONOMIC DYNAMICS: TRANSITIONING FROM TRADITIONAL TO DIGITAL CURRENCY SHAKIR SHAUFIT AFFANDI International Institute of Applied Science of Swiss School of Management. Abstract This study explores the potential of cryptocurrencies to reshape global commerce and economic interactions. It traces the evolution from traditional fiat currencies to the emergence and growth of cryptocurrencies as digital forms of currency. The research assesses the impact of cryptocurrencies on international trade, focusing on changes in transaction efficiency, cost, and trust in cross-border transactions. It also examines the economic effects of cryptocurrencies on monetary policy, central banking systems, and financial inclusion. The study utilizes primary and secondary data sources, including surveys, interviews, academic literature, reports, and industry publications. Employing statistical methods and qualitative techniques, the data is analysed to derive meaningful insights. The findings highlight both the benefits and challenges of cryptocurrencies in international trade, offering recommendations for policymakers and practitioners. The study contributes to academic understanding by examining the implications of cryptocurrencies for global trade and economic relationships, enhancing theoretical frameworks, and providing guidance for businesses and individuals engaging with cryptocurrencies. Additionally, it identifies patterns and trends, guiding future research directions and addressing potential gaps in the literature. In conclusion, the study emphasizes the significance of cryptocurrencies in transforming international trade and economic relationships, offering insights into economic impact, regulatory considerations, and practical implications, thereby contributing to policymaking and laying a foundation for further exploration in this rapidly evolving field. Keywords: Cryptocurrencies, International Trade, Economic Relationships, Transformation, Digital Currency, Monetary Policy, Financial Inclusion, Regulatory Frameworks. 1) INTRODUCTION Traditional fiat currencies have been the primary form of money used in global economies for centuries [1]. Fiat currencies, such as the US dollar, euro, and yen, are issued by central banks and are backed by the trust and confidence of the public. Over time, the evolution of fiat currencies has witnessed changes in monetary systems, including the transition from the gold standard to flexible exchange rates. These changes have influenced the regulation, management, and utilization of fiat currencies in international trade [2]. In recent years, cryptocurrencies, such as Bitcoin and Ethereum, have emerged as a new form of digital assets [3]. Cryptocurrencies utilize cryptographic techniques to secure transactions and operate independently of centralized authorities. The introduction of Bitcoin in 2009 by the pseudonymous creator Satoshi Nakamoto marked the beginning of this transformative phenomenon [4]. Since then, the growth and adoption of cryptocurrencies have gained momentum, attracting individuals, businesses, and institutional investors [5]. The underlying technology of cryptocurrencies, particularly blockchain, has enabled transparent and secure transactions, disrupting traditional financial systems [6].