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UN Envisions A Global Currency, And It’s Not Digital

April 14, 2020

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UN Envisions A Global Currency, And It’s Not Digital

The United Nations (UN) revealed their interest to create and maintain a “Global Reserve Bank”, one that will be also the publishing house for a Global Currency, which is supposed to be backed by a basket of national fiat currencies. 

Does that sound familiar to you? In certainly does, as this is the initial pitch of Facebook-backed fintech venture Libra, the one that didn’t saw the light of an exchange due to regulatory uncertainty

According to the 218-page document acquired by CNBC during the UN Conference on Trade and Development, United Nations cited that countries could agree to exchange their own national and regional currencies for the new global currency, which on its own turn, would be backed by a basket of currencies of all the country members.

While the UN believes that its time to ditch the US Dollar, the Euro, and the Yen altogether, CNBC commentators didn’t hesitate to express dissatisfaction with the UN’s vision, reminding us how UN once wanted to charge everyone one cent per 100-email messages sent, adding that the report was written by bureaucrats without any actual legal ability to create the global equivalent of the Federal Reserve. 

Read More: Samsung Is The First Global Tech Giant To Spread Cryptocurrency Adoption

Now, that was totally an aggressive behavior generated by a sense of fear, considering that whether the UN is ready for something such big or not, the US Dollar is indeed at its finishing lap, with more bills being printed out of thin air as you read this. 

The worst part here is not whether the Fed is better than the UN or vise versa, but the fact that UN plans to establish this system based entirely on paper money. I mean, isn’t this stupid at best? especially when analogizing we’re in 2020, constraint under the ongoing global epidemic.

At the same time, creating another fiat currency backed by fiat currencies would make hyperinflation look normal since every country could print more domestic cash in order to generate more of the newly introduced fancy global paper money.

The US is practically laughing at this attempt, paralleling it with China’s attempt to create a cross-border digital currency that’s already long-postponed for quite some time. According to CNBC figures, China is now the largest foreign holder of U.S. Treasury bonds worth over $776bn. 

Nevertheless, I partly agree with the US, saying that FED can’t be brought down with another FED, but my other part knows it could be replaced by a digital economy. 

Read More: Coronavirus Delays China’s Digital Currency, Or Does It?

China may or may not be the one who creates the global digital payment standard anytime soon, but that doesn’t deny the fact that digital currencies are the only way to go, especially when we’re envisioning a smarter, faster, and more secure future.