The unification of world economy through a universal currency is a dream for many. Although it would also mean the end of the great fortunes that control the world economy. Through a universal currency, the cost of assets and services could be unified. For example, the value of an apple would be the same in any country. For many African countries, that would mean the end of hunger and poverty. Obviously, as long as there are governments and politicians on this planet, something like that will never happen.
It may seem unfair, but the salary of a qualified professional with years of experience in a third world country isn’t even a tenth of a basic salary in a developed country. This is another result of the unfair international market policies.
For many years, various rulers have proposed creating a supranational currency that is above political interests to protect the world from a possible global financial crisis. Today, everything an influential political leader does or says can help or hurt the global economy.
Politics has been the main obstacle to the unification of the world market. In theory, local currencies lack of value and are only a mean to unify a nation’s economy. However, the emergence of cryptocurrencies has taught us that the unification of the world economy isn’t such a crazy idea.
Launching of new technological products, closure of companies, end of commercial relations between countries and threats of war. Things like that have been causing the most alarming fluctuations in the stock market. The same also happens with cryptocurrencies. In 2019, the collapse of the popular website of cryptocurrency exchange, Coinbase, was the cause of a fall of more than $1.400 in the price of Bitcoin.
In the past, international electronic money transactions were only possible through banks with SWIFT technology. The transaction usually becomes effective during the first 48 hours, depending on the banks. Through cryptocurrencies, people can buy, sell and exchange money without having a bank account and in much less time.
In addition, cryptocurrencies aren’t regulated by any banking institution, which makes them immune from possible interventions. Banks are free to cancel their clients’ transactions or freeze theiraccounts. However, the cryptocurrency market is totally decentralized and third parties can’t access the funds of users in a blockchain. In addition, the personal information of users is encrypted, which makes it impossible for hackers to access it.
Expert hackers in identity theft have managed to access sensitive information from thousands of people taking advantage of security flaws in bank databases. Many banks that don’t prioritize the security of their electronic data have become the ideal targets of cybercriminals.
For years, banks made us think that they were indispensable in our lives. However, the cryptocurrencies taught us the opposite. Could the cryptocurrencies mean the end of the banks? For now we don’t know it. But it’s true that cryptocurrencies have come into our lives to stay, so we better learn how to use them.
Kamran Gasimov is an adviser to the Chairman of the Board and Director of Creation of Bank Products and Development of Sales Channels at MuganBank OJSC. He also is a Co-Founder and Development Director of Accounting and Tax Resources and the Founder and Director of Richmond Group.
