Whether we pull out paper bills or swipe a credit card, most of the transactions we engage daily, use currency. Indeed, money is the lifeblood of economies around the world.
First of all, what does the word "currency" actually mean?
'a system of money in general use in a particular country' is the definition.
It "refers to money in any form when in actual use or circulation as a medium of exchange, especially circulating banknotes and coins.", according to Wikipedia
In England, we have pounds as a currency, wheras in America, they have dollars - and Turkey, their lira. Every country - well, just about - have their own currency.
We did have a common currency for all countries - and not too long ago. This was called gold. Some used silver and bronze too to determine different values. Different countries may have had different units, but the value was based on the weight of the coin. Today, the value basically depends on how much a government is printing its money. It's just simple demand and supply. If a government prints too much, then too much money will circulate, making the currency abundant for everyone. If everyone has a lot of something, its value deteriorates, doesn't it?
Yes, it is..
because it gives the country a national identity. Also, if your currency is high in stock markets, it brings advantages to shares, giving your country - again - an identity, along with more profit and power. When your money is strong you are the boss; like a string puppet and the owner; the owner holds the strings and controls the puppet however he wants to. Being the boss means you change the global financial market altogether, as you are now top, and that brings power in the political arena. When a country becomes independant, you instantly want to do something yourself, and so this is your chance! Make your own currency; start from the bottom and move up to the top. If you have strong money, you have an advantage as you can buy more things for less because your money is simply so strong in the money market.
No, it's a bad idea...
because wouldn't it be easier without it? I think so, my reasons being; Imagine you are Albanian, and you want to go to the UK, you would lose money, as your money simply can't compete against the Pound Sterling. (this is basically the opposite of the example in the Yes, it is.. paragraph). It's also easier without it because you wouldn't need to go through all the trouble of firstly finding their currency, then understanding it (I bet at least some are dreadfully complicated), and finally exchanging your current money to something that might well be less than you expected. I guess this will not help people who are struggling, as they have (let's say) moved to another country, just to find that it has not helped at all, just made things worse, because of the fact that their money has turned out to be less than they had in the first place.
The Bottom Line
Regardless of the form it takes, all money has the same basic goals. It helps encourage economic activity by increasing the market for various goods. And it enables consumers to store wealth and therefore address long-term needs.
It depends on which side you have more benefit in; which suits you. Personally, I think that it is more easier without it, but then again, that's because it suits me, and so I rest my case.
What do you think?
Are Different Currencies Necessary?
P.S. I used the following websites for inspiration/research:
- Google, for the definition of Currency