Research, Technology

Why is there no single currency in the world?

Events in the modern world are changing withat lightning speed, and with them the exchange rates change. At the moment, it is known about the existence of more than 250 different monetary units that belong to different countries and fluctuations in their value directly affect the cost of goods and services. To make profitable transactions, people have to constantly monitor the exchange rate of the dollar, euro and other currencies. But why don't representatives of all countries unite and create one, single currency for the whole world? People will not have to follow the news so carefully, the prices for all goods and services will become the same, and in general life will become much easier. Unfortunately, the world is much more complicated and it is almost impossible to create a single currency for the whole world in the modern world.

There are more than 250 currencies in the world with different reputations, but why don't people create one, but a good one?

Attempts to create a single currency

If you ever wonder whymankind has not yet created a common currency for all countries, you are not alone. The idea to create a global monetary unit was repeatedly discussed by representatives of many countries. However, translating this idea into reality is much more difficult than it might seem.

The idea to create a global currency arose a long time ago, but its implementation is an extremely difficult task.

Over the years to become a single worldThe currency was the American dollar. To some extent, he succeeded. Today, the dollar is rightfully considered the world currency, because most of the international transactions are made with the help of it. The American dollar acquired such an important status in the 1940s because after the difficult war times, only it was considered the most stable. From that time to this day, many countries keep their savings in this currency.

The American dollar gained importance in the 1940s

The dollar cannot become the only currency in the worldbecause it entails certain risks. For example, no one knows what will happen to it in the future - maybe it will suddenly depreciate? The greatest competition for the dollar is perhaps the euro created in 1999. It was developed specifically for European countries, and today is the second currency after the dollar in terms of importance for the global economy.

Euro is one of the youngest and most successful currencies in the world

See also: Top 5 most beautiful banknotes in the world

Cons of the global currency

In fact, the creation of a single for the whole worldcurrency carries a lot more risk. At the beginning of the article, the advantages of a common monetary unit were already listed - you don’t need to follow the exchange rate, the cost of goods and services is the same everywhere, and so on. Travelers could be especially happy about the common currency, because they would not have to think about how it would be more profitable to exchange currency.

If a single currency appears in the world, currency exchange offices will close at once

With all these advantages, the theoretical unifiedcurrencies have a huge number of disadvantages that can significantly complicate the lives of ordinary people. Take, for example, the same cost for all products - this is a very dangerous phenomenon. After all, do not forget that in all countries there are different levels of average wages. There may well be a situation in which the inhabitants of some states will be able to afford anything, and some will hardly survive on essential products.

A global currency could put some people in poverty

Some sources say that the creationa single currency at all can lead to disaster. This can happen if a crisis situation suddenly occurs in the world, which will negatively affect the value of the global currency. With multiple currencies, countries could simply start storing their savings in other assets, but with only one kind of money, this is not possible.

An abundance of currencies is necessary for the security of the global economy

Based on the above, it is possibleconclude that the creation of a single currency is impossible without a common world government. Many countries find it much more convenient and safer to use their own currencies. In addition, as you can understand, the presence of only one currency is a very risky undertaking that can lead to disaster. What do you think about the common currency for all countries? Write in our Telegram chat.

We also have a channel in Yandex.Zen. Recently, an article was published there about the most unusual banknotes and coins from around the world - I recommend reading it.

The fact that before the advent of the global currency is veryfar, hints at the increase in the number of varieties of currencies. Relatively recently, I have already talked about their great variety and singled out among them the most expensive and cheapest types. So, the most expensive currency in the world today is the Kuwaiti dinar, which costs more than 250 rubles (the price is constantly and dramatically changing). And the most stable currency in the world is the Swiss franc, which is used by many countries to accumulate reserves.