The US Dollar has been the standard value for other national currencies for many years now. The US dollar has become the world's reserve currency, with countries accumulating reserves of US dollars. Keeping the USD reserve has allowed nations to show off their economic powers, and it has since become a medium of exchange in international trade. However, in recent years, the Dollar has started losing its value , and this drop does not seem like it will end anytime soon.
The COVID-19 pandemic and the weakened American economy, which have lost its production activities and jobs to China and other developing countries, have brought dramatic changes. These conditions have forced nations to search for an alternative monetary system in order to continue their international trade activities. China, Russia, Central Asian States, and India have been working on bilateral trade and monetary agreements to continue trading in their own national currencies. Similarly, even though it is a weaker effort, Turkey has signed a monetary agreement with China to trade with the Turkish lira and the Chinese Yuan. Moreover, cryptocurrency, which is dependent on highly complex computer networks, has also been growing . Some alternatives to USD based monetary systems seem to be appearing in the global economy, although they are not quite complete yet.
A new monetary system is inevitable, although it might be more complicated than its precedents. As expected, technology will have a significant influence, and physical money may disappear in many national economies shortly. In developed countries, almost all citizens have credit or debit cards, while more than half of the world's population have them. The full digitalization of money is near, with more and more people getting used to e-money. Therefore, a new monetary system managed by computers might be something that our generation will observe very soon. The next step will be discussing which country or organization could create and facilitate this system, and the International Monetary Fund (IMF) or a similar organization is a likely possibility.
The global financial crisis, which started in 2008, has made it evident that there are various sustainability issues with the current economic system and its components. The pandemic has also brought attention to this matter, bringing light to the system's failure to provide security and equal access to public services for all. Thus, such issues may force reform in the global system, including the monetary system, and it seems like the new technologies will be able to make this change easier.
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