What Will Happen If The World Uses One World Currency?
What will happen if the whole world is going to use the same currency? Imagine if the whole world only has one currency, the economy would behave rather differently than how it is now. A currency war would be history. Trade wars through currency manipulation might not be easily executed as they are now. Is it really that positive to have one world currency? If you’re reading on, you might see that I’m not so sure about this idea. Nonetheless, the idea is interesting and provocative.
Saying is easy, but having one currency for the whole world would be difficult. Our world is made of countries with histories and sovereignties. Thus, each country has its own financial and currency systems. Except for the Eurozone member states, most countries are able in printing their own currency for whatever purposes. Since each country is being ruled by a specific umbrella system that supports the financial and currency systems, and so it’s rather difficult to have any country in such a situation give up its right to print its own currency.
Nonetheless, let’s say the whole world gets together and decides to have one currency for all countries in the world, the question is how one world currency system would behave. Perhaps, it’s like democracy, because each country should have the right amount of currency printing privilege in percentage quota. The world could use the population size of a country to determine how much percentage quota for the right to print the one world currency a country should have.
The idea of one world currency is just too radical because nothing like this has ever happened in human recorded history. Since this is too radical and has never happened before, I don’t think anyone is clever enough to see the consequences if one world currency is actually taking place.
My suggestion — if this scenario takes place, the country’s population size should determine the percentage quota of the right to print the one world currency — is having many flaws. On the top of my head, a flaw of this suggestion is noticeable regarding how a country should prioritize its policies because the larger the population size the bigger the percentage quota would be for printing the one world currency. In a competitive world with one currency, poverty might be increasing instead of decrease. If a country decides to make policies that encourage population growth but without policies to help keep the population stays competitive in the world market, it’s a disaster in the making since a bigger population means more mouths to feed. In one world currency system, wrong prioritization of policies can encourage a disaster on a very large scale.
I think there are positives and negatives regarding having one world currency. The positives are a cohesive world monetary system, less aggressive trade and currency manipulations, and so forth. The negatives are poverty might be increasing in uncompetitive countries/regions, losing sovereignty, the democratization of currency printing is still going to be dictated under one central umbrella governing body which oversights the regulatory bodies of how one world currency should work, and so forth.
Since I’m just a puny human, I don’t really know all of the negative consequences that might bear fruit if one world currency system is actually taking place. One thing I do know is that most things are possible, and so you would never know that one day the whole world might band together to come up with one world currency. Who could have thought Eurozone would be possible, right? Nonetheless, the jury is still out in regard to how effective and prosperous the Euro has been for the Eurozone member states. After all, Eurozone as a whole is facing greater uncertainty regarding the increase of financial instability within several Eurozone member states. Greece comes to mind in this regard.
I don’t particularly side with the idea of one world currency, because seeing how Eurozone member states are facing the problem of not having to able to print their own currency to support their uncompetitive trade markets. Still, seeing how one country can manipulate its own currency to boost trade competitiveness at the cost of other countries’ trade welfare, perhaps one world currency might be able to stem this problem. To sum things up, I’m not sure having one world currency can solve the world’s financial uncertainties because Eurozone member states have shown that even they are not immune to the financial uncertainties even though they are using one currency (i.e., the Euro) to trade with each other.