Why can't we use a Universal Currency ? Who will gain or lose with such a transition ?

Question

Here are some problems that I see with the current multi-currency (Dollar, Euro, Pound, Yen, Rupee..) system:

1) Currency conversions are unnecessary expenses that have to be borne by individuals and businesses.

2) Currency fluctuations are usually due to macroeconomic factors and can affect businesses adversely. Since businesses usually dont have any control over such factors, currency changes always come as a surprise to businesses (and individuals) disturbing careful financial planning.

3) In an increasingly global environment, different currencies make it harder for businesses to react quickly to business needs.
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Lets call our Universal Currency as "Money" or "Monies" !! Apart from solving the above problems, a truly Universal Currency can have another key benefit

*** Bring people together***. As a role model, Euro has already done this to some extent in Europe.

Leaving aside political hurdles, What are the potential drawbacks with this idea ?

Answer 1

Best Answer - Chosen by Voters

You forgot the petro dollar the only thing stoping the US from going broke
you cant have a world currency when the US would want to contol it

Answer 2

I do not want any part of common currency. That is taking identity out of the equation. who would control the printing of this money ? Huge problem with that. It would also mean that "In God we trust" would be removed. That would push a more secular ideal to our Government that I also would not support. Who would support the backing of this printed money ? I am sure the USA would have to be a major contributor. It would end up being another USA financed program for the world. You cannot leave political hurdles aside from this issue. I would not want our country propping up our enemies by financing their money.

Answer 3

We already have a universal currency. It is called Gold.
The biggest advantage to a universal currency you describe is that it would place our domestic currency and economy under the control of foreign interests. We all know how every country in the world is our friend and wants to help us so by giving them control of our currency it would help every American, good idea, NOT !
It only takes a business a few minutes to exchange currency on the foreign currency exchange so it would do nothing to enhance economic efficiency.

Answer 4

Each type of currency now represents a social economy and its purpose and function go deeper than just economics. In the United States for instance, we identify with our currency because it bears images of past great prsidents which gives it social value as well. If we integrate with other econmies in the currency we use, it will kill that part of our ethnocentrism. Also we will be even more reliant on other econmies and be vulnerable to their weaknesses or to become too reliant on their strengths which could dissapear leaving us problems should they suddenly become unstable.