Discussions on the need for a single world currency in today’s globalized multipolar world
This paper discloses the manifestations of globalization in the overall monetary and financial sphere; the practice of using a national currency as an international currency in the second half of the 20th century; the conflicting economic interests of Euro-Area countries at the beginning of the 21st century; the concept of creating a global reserve currency and its criticism. An attempt was made to assess positive and negative consequences of using the US dollar as the world's reserve currency in the 20th century; to consider the main advantages and contradictions in the functioning of the Euro as a regional currency; to present various positions on the political benefits and economic contradictions with respect to using the global reserve currency; to justify the assumption that the system of multiple reserve currencies should be preserved and further developed. However, the author does not exclude the possible emergence of a global supranational currency, the functioning of which will not be subject to the political will or economic conditions of individual states or their groups. It is hypothesized that the single international currency of the future will be electronic. The singular and specific character of electronic money is exemplified by the experience of using the digital currency known as Bitcoin. Its introduction spurred the creation of a new way of money emission and turnover, and generated a number of controversial opinions on the perspectives of its application. Most significantly, Bitcoin differs from traditional types of electronic money and cashless payment instruments in the way that Bitcoin emitters assume no liability whatsoever. Bitcoin is a virtual currency, a number associated with a number of conditions. Only the person who meets access requirements can use the money. It is typical to use a Bitcoin address, but there are other options as well. Bitcoins can be used only within the Bitcoin payment system. The value of Bitcoin is not pegged to the value of any other currency or asset. Its exchange rate is determined only by supply and demand. The issues of how distant the above-described future is and whether the cyber currency will still be called Bitcoin remain pending. The answers will unfold along with further development of information technology and deepening globalisation of international economic relations. It is infinitely more difficult to foretell the name of this global electronic currency and its emitter, or, at least, the institution that would support and regulate the issue, turnover, and destruction of electronic payment instruments.