Imagining a Borderless Global Economy
I believe the traditional financial system needs a total facelift. If not now, then sometime very soon.
Based on central reserve banks and liquid stocks, the current system isolated a significant portion of the global population … even before COVID-19 entered our collective world.
An economy that relies on the foreign exchange rate of the dollar puts international markets at risk of volatility and instability. If one of the critical stakeholders fails to uphold the system, we can easily topple into a recession. That ground is way too shaky to sustain a scalable global economy.
In the case of fluctuating political scenarios, natural disasters, pandemics (ahem!) or other such unforeseeable events, the dollar-backed global financial system teeters on the fine line between stability and complete decimation. We’ve experienced elements of that, globally, during the COVID-19 pandemic.
This includes exchange rate instability, panic buying/selling of stocks, and mass retreats to safe-haven investments. Then the “trickle-down effect” starts to negatively impact the cost of services, amenities, and products around the world.
An Elegant Solution?
Humor me for a minute. Imagine if we were to create a global currency exchange system that was…
● Not reliant on the dollar
● Immune to exchange rate fluctuations
● Unaffected by global travesties
● Free from political control
That scenario would feature easy, fast, and free transactions across international borders. And it would probably be based on digital funds … like cryptocurrency.
What kind of a world would this borderless financial system create? The list can go on and on, but let’s look at a couple of scenarios.