Why The World Can’t All Be On One Cryptocurrency
There are those within the crypto community that hope to one day have a global currency, all on the blockchain, that will free us all from the clutches of governments and banks. While I do think that the future of currency is and ought to be crypto, I don’t see that particular scenario ever panning out. Besides the fact that governments will probably never let such a thing happen, it’s simply impractical, economically unsafe, and unwise to all be on a single currency.
I get my unease from the post-recession Euro crisis that’s been plaguing Europe since the end of 2009. Europe’s misfortune teaches us something, in my mind, of extreme import: the value of a currency can have a profound impact on a country’s financial health. Governments know this, and a country in control of its own currency can manipulate the supply of the same to complement current economic conditions. (See, as an added example, China’s monetary response to Trump’s tariffs.)