The financial system as we know it needs to change. The currency you use daily to pay for goods and services also needs to be changed and “upgraded”. But would it be good to have only one world currency, as there some such proposals now? Let’s take a look at what would happen if humanity accepted one world currency.
Why it matters
It is quite possible that the world is heading towards an economic crisis due to several factors. This would affect all aspects of life, from food and energy to supply chains. In every crisis, the vast majority of people suffer and look for other ways to alleviate the effects.
Already during the pandemic, people were denied many things, from traveling to spending their free time with family and friends, visiting restaurants, cultural events, children were not allowed to go to school and see their friends and many people were forced to work from their homes. In addition there are already fewer and fewer jobs, and automation and robotization of jobs is continuing faster than before.
What you can hear
These problems could be, according to some theories, solved by a faster digitization of our society. Among these ideas is one global digital reserve currency as well as already planned digital currencies of central banks, digital identity or digital passport for everybody to enable travelling again and some other intiatives.
What it could mean
Adopting one world reserve currency could mean a lot. Central banks are already working on their own digital currencies in the form of CBDC. However, a global digital currency would also present a great opportunity for hackers, and it would be very vulnerable because of its centralization. And should such digital currency replace the currently used American Dollar, the change could cause a period of instability, as there will be more digital currencies competing for such a role. As of now, the Chinese are leading the race for CBDC and it is beyond doubt that they would welcome this opportunity.
What you can do
It is certainly good to be educated in the field of digital currencies, CBDCs and also in alternative possibilities, such as cryptocurrencies. You can read our articles about these topics to find out more about the world of digital finance, and then you will be able to decide, which way would be more advantageous for you.