The idea that some have with cryptocurrencies is that finally one of them, like Bitcoin for example, becomes a single global digital currency. This would undoubtedly have numerous benefits but is it really something viable?
Having a single global currency would really make sense. To begin with, the manipulation of the value of the different currencies would disappear, the prices would be more transparent and the commissions associated with international transactions would be eliminated. But if its advantages are so obvious, why does not it exist already?
The appearance of cryptocurrencies makes it even more possible to have a single global currency. In fact, Bitcoin advocates sometimes adopt this argument to defend the digital currency. However, it seems unlikely that it will happen, or so believes Scott Galit, CEO of global payment startup Payoneer.
Despite being more transparent and convenient, having a single global digital currency would not interest some governments, especially the United States.
For starters, Galit believes that the US government would hardly accept that its citizens pay taxes with Bitcoin or another digital currency. Why? Basically this would imply that government money would be subject to fluctuations in the price of the cryptocurrency, exposing itself to losses in value.
Thus, the central banks of each country would lose their ability to control the currency and, therefore, to manage and direct the country’s economy, explains Galit. “If you do not have any control over a currency, you have lost one of the greatest political tools you have, so what are you doing?” The CEO said during an interview with CNBC.
Although Galit could also have its own interests when it comes to saying that there will not be a single digital global currency – your company makes money thanks to international transactions – it is not the only financial expert who is skeptical.
On the other hand, we find technological experts like Jack Dorsey, CEO of Twitter, affirming that in a future Bitcoin will be the only global currency. The recent instability of Bitcoin seems to question this approach but will another cryptocurrency candidate to be universal? Although it seems improbable at the moment, it will be necessary to wait to see it.