Should There Be One World Currency?

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via foreign exchange live

Different currency from all over the world

There are many things to consider when thinking about whether there should be one world currency, such as what would change, what would the money be based on, and is it possible? Using facts and evidence, it is not a good idea to have one world currency, and it can most likely never happen or last long.

First of all, there are actually not a lot of positives when it comes to having one world currency, but in the eyes of some, these positive changes are big. One positive of having one world currency is that there will be no need for money transactions when traveling to another country. When someone wants to exchange currencies, they would have to go to a bank and have the bank do a conversion, which the bank charges a fee for. Not only will there be a charge to exchange currencies, but there will also be a loss in value when exchanging from one currency to another. With one world currency, the problem of needing to exchange money for whatever reason will no longer exist, and any other issue that comes with that will also be gone.

Not only will the need to exchange currencies disappear, but having one world currency could also help enhance trade. This means that since there is one world currency, the risk of losing money when trading internationally will disappear since a huge barrier will be destroyed. Take the European unions as an example – ever since they changed to the euro, trade between member nations increased by about 15%. Just imagine what would happen if the same thing happened to the whole world.

What are the disadvantages of having one world currency? First of all, if there is only one world currency, there would have to be one world bank that decides interest rates and stays fair to all countries. Meaning that even though one country is having financial problems, they would still have the same interest rates just so the world bank doesn’t seem to favor that country. For example, take Germany, when the euro became the adopted currency. People with a devalued currency became attracted to Germany, and this caused debt to soar and exports to dwindle. 

Lastly, is this possible? Well, yes, having one world currency is possible, but having one world currency will be very hard, not only to start but also to maintain. Even though some problems will be fixed with one world currency, many other issues will either grow in size or make an appearance, so one world currency might not last too long.

In the end, one world currency might sound like a good thing, but when thinking about it, usually only the positives are seen. No one ever notices or talks about the negatives, but they should be detected before it is too late.