The last few weeks we have become used to receiving news from the financial market almost daily. Be it the collapse or recovery of the stock market, the fall in the price of oil, or the behavior of certain currencies. For those who do not know how it works, the world economy may seem chaotic. Therefore, in the midst of the age of cryptocurrencies, it seems worth asking: Why is there no world currency?
National sovereignty above all
To answer this question, we must begin by explaining how the international system works. Well, far from what the media often tells us, the main actors in international relations are not organizations, but States.
Large organizations such as the UN or the European Union, have no more power than that which the States have agreed to provide them.
Therefore, if the UN does not have greater authority than that which the States cede to it, we could ask ourselves: Who then supervises the States? And the answer to this is: nobody.
The international system is the best example of an anarchic environment that we can find today, where, unlike our nations, there is no government or police that has universal jurisdiction. Therefore, each State is for itself and is responsible for its own security.
Of course, states have managed to maneuver between their different interests to create a more or less rational world order. In which, although the struggle for power is the fundamental characteristic, there is room for international cooperation, and openness between nations.
Above all, thanks to the vigilant gaze of the United States, a world superpower that has shaped the international system in its image and likeness.
However, and although this world order brings stability to the relations between nations, they cannot be trusted. Well, leaving the security of your State in the hands of a third party, is probably the last mistake you make. This is why issues such as national currency or borders are so delicate to deal with in the face of the concept of national sovereignty.
Is a world currency possible?
And it is that, if we consider it carefully, we realize the potential implications that a country could have to give up its national currency against a global one. Especially when applying macroeconomic policies according to the situation of its national economy.
Thus, if for example Argentina decided tomorrow to abandon the peso and embrace the dollar, the government of the southern country would immediately lose control over its money market. Therefore, the days of establishing interest rates with which to stimulate or slow economic growth, or of issuing the currency required by the country for its annual needs, will be over.
Instead, the days when the United States will possess immense leverage over Argentina will have begun. Well, if the United States ever wanted to force Argentina to make this or that decision, it would be enough to prohibit access to the financial system built around the dollar or stop the entry of its currency into Argentine territory, to bring the entire country to its knees. country.
And although this is still a hypothetical situation today, this scenario is undoubtedly enough for most decision-makers to prefer to negotiate internationally with dollars, but keep their national currency as always.
There is a possibility that, although remote, it was possible to create a world currency. After all, cryptocurrencies like Bitcoin were born with the intention of being used worldwide. Like a currency without borders or flags of any kind.
So, can cryptocurrencies become the world currency of the future? The truth is that only time can answer that question.