A single global currency
It will be nearly impossible for corrupt governments to steal wealth from their people through their old means because if they try then people will switch to cryptocurrencies, in effect dumping the worthless local currency for something more secure.
Why dollar is global currency
Ohio has become the first state in the country to allow certain tax bills to be paid with bitcoin, but payments still need to go through the website OhioCrypto. Under a global currency, this type of aggressive management of a national economy would not be possible. In addition, there would be somewhat of a leveling of the global playing field, since nations like China could no longer use currency exchange as a means to make their goods cheaper on the global market. In contrast, while the EU allows for citizens to move freely from one member state to another, workers in Greece would need to learn a new language in order to find a job in Germany. At present, these benefits accrue only to issuers of national or regional currencies that are used internationally — particularly the US dollar and the euro. Nor would SDRs need to be used as a unit of account outside the Fund. Having multiple currencies seems to create confusion. One might argue that the Internet expands the scope of remote work and likewise the size of the optimum currency area, but there are countless jobs that are still geographically tied and cannot be digitized e. But only central banks — mainly in developing countries, though also in developed economies — and a few international institutions use SDRs as a means of exchange to pay each other. More active use of SDRs would also make the international monetary system more independent of US monetary policy. So long as cryptocurrencies are used for real-world commerce e. But could one currency really work? A political apparatus that covers the whole currency zone: No way. About the author: Richard works at 1confirmation , an early-stage crypto venture fund based in San Francisco.
In the s, under the leadership of the Belgian-American economist Robert Triffin, other proposals emerged to address the growing problems created by the dual dollar-gold system that had been established at Bretton Woods.
It makes goods cheaper when exported to regions with relatively stronger currencies. The policies of these banks affect the currency market like nothing else.
According to Su Zhu and Hasu, such monetary maximalism could fall short of expectations due to social issues like cultural clashes between different currencies and regional biases that favor separate local currencies.
Optimum currency area But wait! The Fund could then issue SDRs regularly or, better still, during crises, as in Monetary policy could not be enacted on a country by country basis.
But for other areas, trying to force a single currency would likely do more harm than good. Southern European nations began to demand more German goods, and all of this new money coming into Germany led to considerable prosperity.
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