The Bretton Woods System refers to a monetary framework established in 1944, which fixed currencies to the U.S. dollar, allowing for stable exchange rates. Although this system primarily pertains to traditional finance, some concepts from it have influenced discussions in the cryptocurrency space.In the context of cryptocurrencies, the term can represent stablecoins—digital assets pegged to traditional currencies like the dollar. Stablecoins aim to provide price stability, similar to how currencies were fixed to the dollar under the Bretton Woods System. These stablecoins facilitate transactions and reduce the volatility often associated with other cryptocurrencies. They serve as a bridge between traditional fiat currencies and digital assets, making it easier for users to transact or hold value without experiencing wild price fluctuations. While the original Bretton Woods System eventually collapsed in the 1970s, its principles of pegging and stability continue to resonate, influencing the creation and use of stablecoins in today’s financial environment.