by Mr. Aquarist

Created on: December 06, 2007   Last Updated: September 29, 2010

A single currency distributed throughout the world would prove to be disastrous. First, we must consider that the world is made up of many different cultures, and in creating a single currency, we are eliminating those countries' cultural identities.

Furthermore, it would be chaos; if that currency failed, then the whole system would fail. Presently, most countries have invested in the euro (a prestige previously held by the United States dollar). What this means is that if their own currency fails, or something terrible happens to that country's economy, then they have a currency to fall back on. What would everyone fall back on if everyone was using the same currency?

It would also be a nightmare controlling counterfeits. With so much opportunity to make clones of the same bills, fraud would increase almost exponentially overnight.

It's best, probably, to keep currencies to continents instead of the entire world. Currently, the euro is the main currency in Europe, and the dollar is the main currency in the Americas. These two currencies compete well against each other and it encourages innovation and efficiency among those countries that hold these currencies. If there was a single currency, then there would be no need for competition except in the free market which would simply lead to huge corporations and large monopolies.

Separate currencies also act as buffers. The euro for example, because it is also controlled by a single economic government, acts as a pact, controlling who buys what and thus enriching an already valuable currency which is what makes it stronger against the United States dollar. Each currency is a different cultural identity. Different currencies encourage growth and competition. Separate currencies act as buffers against one another.

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