Although a world currency benefits both developed and developing countries, we do not think that the rise of a world currency is a probable scenario in the foreseeable future because of three reasons:
- 1. Countries will not give up the freedom to decide monetary policies that suits the need of their countries.
- 2. Lack of an entity with enough political power to establish such currency, and if an entity has that ability, it will certainly choose its own currency to benefit itself
- 3. Difficult to balance the interest of all countries. It is difficult to determine the conversion rate of different countries’ currencies against the world currency.