Never before had there been such an ever-increasing trend in the international trades and transactions. In the popular perception, having a single global currency would bring palpable benefits to traders and travelers. Yet there are those who contend that a single currency would cause a staggering number of issues.

source of photo: Google

It is the future, and it is inevitable
First and foremost, globalisation is considered to be an inevitable trend. Thus, there are millions of transactions every second world-wide and every transaction involves a currency. A single global currency would facilitate seamless transactions since there is no foreign exchange rate required. It is noteworthly that the multi-national companies can save conspicuous costs in accounting services. Needless to say, travellers would be more enjoying their trips since the conversions of currencies can be averted, notably for those traveling to multiple countries frequently.

But, it is hard
From another stance, having been considered to have close relationship with the economy, a currency is representation of a country's autonomy. Before a single global currency is implemented, all of the countries' central banks should compromise; resultantly, certain countries have to sacrifice their controls over the economic policies including interest rate setting. To exemplify, a developing country which is perceived to have higher risks ought to set a higher interest rate to compensate the potential investors and maintain its competitiveness. Nevertheless, adopting the same interest policy and play havoc with that country's competitiveness and economy. Furthermore, there exist other pragmatic concerns, including which banks should have right, and to what extent, to issue bills and notes, upon implementing a single currency.

Viewed as a whole, notwithstanding the fact that a single currency can bring convenience to individuals, there are detrimental impacts to certain contries' macro economy. To my way of thinking, the economic and political concerns ought to be addressed before a single currency is implemented.

Cyptocurrency? Is it a way to go?

source of photo: Google
Based on the above political issues, it seems to be difficult to issue a single global currency by a central bank. However, Bitcoin, a decentralized currency, not supported or owned by any country, was created in 2009. It provides a solution to transfer money in safe and fast without a middleman. Meanwhile, no bank service required for long distances money transactions! In addition, the supply amount was fixed to be 210 million and no one can change. That means it can guarantee it's value by not printing money as governments do.

It gives people a light to think about how a single global currency can be. And certainly, there is still a long way to go.

Leave me your comment
As it is just my personal point of view, your comments are greatly appreciated. Feel free to give your opinion!

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