Why does world need more currencies?


The Bretton Woods Conference (*1) is one of greatest international economic gatherings ever. And while no one can say yet whether the role of the USD in the international monetary system will be the same dominant in future, there are more than just doubts.

One key feature of the Bretton Woods system was that countries would bind their exchange rates to the US dollar. While this system was effectively eliminated in 1971, the US dollar’s dominating role in the global currency system is still more or less intact — a reality that many people wouldn’t like to accept.

But such discontentment with the USD function as the dominant global reserve currency is not new. In the 60s, the French finance minister Valery Giscard d’Estaing strongly criticized this “privilege” of the United States dollar’s status in the currency system worldwide.

The Belgian economist and scientist Robert Triffin analyzed that a global currency system based on a national currency could be risky and unstable, because of the different interests and the associated arbitrariness owing between USA/USD and the rest of the world, caused by a US dollar-denominated system. The solution, however, lies not in replacing the dollar f.e. with the renminbi or the euro. The international currency SDR, introduced by the International Monetary Fund (IMF), has also failed.

The star economist Thomas Piketti describes in his book “The Capital in the 21st Century” the pattern and the structure of the unequal capital distribution. Anyone who reads it carefully will also be able to recognize the mistakes coming from the current global currency system.

In strengthening the role of the world’s new and truly global currencies like Ether, Bitcoin, Dentacoin f.e. this may be the best solutions for the major unresolved currency problems in the world.

While developed countries, including the US and the United Kingdom make profits with this old concept, losing low-income countries in the world and the imbalance grows.

The simplest way to fulfill this vision would be to allocate a large group of krypto currencies as a full reserve asset, which countries could either use or deposit in their accounts. The IMF and the World Bank would use its own deposits to finance its lending operations, instead of having to rely on credits from members. To address developing countries high currency demands, a formula could be created to give them a larger share than they now receive in aquivalent to USD. In the same time the privat use of crypto currencies could also be encouraged and private users will prefer to use this new currencies about the easy and cheap way to use.

Since large numbers of different cryptocurrencies can exist economically as tokens within the blockchain at the same time, and these currencies are not tied to individual countries, they offer a much more stable basis. This security is strengthened by the fact that these currencies are either industry solutions or technology-based, and the wide variety of currencies (>10000 to 100 000) can be exchanged among themselfes as desired and with FIAT currencies too. (Everyone could rise together with friends and family his own currency.)

This large number of “easy-to-handle” crypto currencies force together highest stability and innovative flexibility at the same time! This is the physical-mathematical law of dynamic compensation, the law of reciprocity and the “Theorema Aureum” (*2). Thus, more fair distribution can be created in the world, while at the same time innovation and value creation are promoted in the interest of all people.

(*1) If “A” is an event of a random experiment, the relative frequencies are stabilized with a sufficiently large number “n” of implementations.

(*2) The Bretton Woods Conference, formally known as the United Nations Monetary and Financial Conference, was the gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel, situated in Bretton Woods, New Hampshire, United States, to regulate the international monetary and financial order after the conclusion of World War II. The conference was held from July 1–22, 1944. Agreements were signed that, after legislative ratification by member governments, established the International Bank for Reconstruction and Development (IBRD) and the International Monetary Fund (IMF).)

Originally published at Dentacoin Blog.


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Healthcare Industry should be in the hands of the people.

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