Establish a global monetary system is a very long journey and requires the effort of all parties. This work is global work, cross-country, even cross-generation. But with the rapid development of recent times, especially the advancement of financial technology backed up with IT technology, this very long journey can be more efficient.
To gather such great resources, gather all those who have expertise, and gather the governments of countries in the world, a very large and powerful shared value is do needed. Values and common interests that can eliminate all differences in perception and exceed any other interests.
Figure 1. Organic Global Currency Road map.
The world has several times found a point of mutual agreement and found such enormous common interests, namely the establishment of the United Nations and other international bodies. The world has also found a point of mutual agreement to save the earth from the environmental catastrophic damage that ultimately gave birth to the Kyoto Agreement and now the Paris Agreement. The world always finds common ground when there is a great mutual interest, and exceeds other partial interests.
So the key words are “great mutual interests”, interests that can affect the fate of all the inhabitants of the earth, and surpass other partial interests.
The question is whether the interests of the shared international currency are large enough to attract all governments in the world to sit in one table?
World economy, global trade, and international currencies, are actually the most important things and the easiest thing that can make all governments gather in one forum. Even the idea of creating an international currency has been repeatedly raised. But the problem is, the idea always stops because the focus of international currency always leads to supercurrency or single currency. As explained above, these two types of international currencies are very difficult to apply. Too many requirements to meet and still very far away. And the implications for the global economy are still questionable.
Meanwhile, Organic Global Currency offers a solution that is completely different from its predecessor, offering a comprehensive solution to the problems of global monetary and trade that have never been completely resolved in the current global monetary system. More than that, Organic Global Currency offers a truly new economic environment and provides an equitable economy for all countries indiscriminately, and opens up an atmosphere of growth opportunities that have never been touched before. And one more thing, Organic Global Currency does not require conditions that are too strict as single currency, or union currency, even almost without conditions. The condition of all countries in the world right now is more than enough to enlist and become an Organic Global Currency country member.
I am sure, there is no country in the world that would reject free international currency. No country would refuse to be released from the obligation to accumulate wasteful foreign exchange reserves worth hundreds of billions to trillions of US Dollars just to strengthen monetary security. No country would refuse to be released from the middle income trap. No country would reject to be released from foreign debt that has never been resolved. No country would refuse to be fully released from the threat of a monetary crisis that threaten their monetary at any time. There is no country that would refuse to have a super stable shared currency whose value wouldn’t drop by one percent in 20 years or 100 years. No country would refuse to enter the new financial atmosphere which gives them unlimited opportunities to manage its resources without worrying about current account balance.
All the advantages generated by Organic Global Currency are actually more than enough to gather all governments in the world to sit in one table to make an agreement. Because the implications will be enormous for the economy of their entire population. What we need right now is education and publications so that the message of global mutual interest reaches all parties, in a comprehensive manner.
1. Global Currency Initiative
The Global Currency Initiative is an idea to start creating a common currency. The Global Currency Initiative is building an idea, educating, and publicizing, and finally inviting the government to take part and take control. Because only the government can run it.
Global Currency Initiative is an open idea for all parties without any restrictions. All parties, monetary-economic experts, technology experts, consultants, entrepreneur, government, teachers, students, from all countries in the world, are all welcome to contribute any idea.
The following are to-do-tasks:
- Build a comprehensive global currency idea based on modern monetary economic theory, utilizing the latest available technology.
- The global currency (Organic Global Currency) main idea already exists and has been built with various pillars. However, regarding the huge and complex global financial system with various unique problems in each country, it is necessary to sharpen and refine the main ideas, equations, and solutions to various problems and various possible problems could arise.
- Building a large and comprehensive idea requires large resources. Therefore the Global Currency Initiative is open to all economic, monetary, and all experts from all fields of science, practitioners, government, individuals and institutions. The Global Currency Initiative is fully open for any collaboration and networking in all forms. The Global Currency Initiative is fully open for all activities both directly and online.
- Education and publications.
- Establish or join existing large networks such as the blockchain network.
- The ultimate target is to invite all governments in the world to take part.
- Encouraging the government to take over and control the Global Currency Initiative before finally gathering all governments in the world to sit at one table and establish UNGC, an international organization affiliated with the United Nations.
2. United Nations of Global Currency (UNGC)
Currency can be issued only by those who have the greatest authority in the world, i.e. the government. International currencies will only be valid if issued by agreement between the governments of the member countries.
Figure 2. Organic Global Currency Organization
UNGC (United Nations of Global Currency) is an international organization formed on the summit agreement of all member countries to create a common currency. UNGC is led by a secretary general who is elected by all member countries based on agreed mechanisms.
Voting rights of each country in the UNGC are determined based on the amount of their international trade (export imports).
The task of the UNGC is to make general plan in the Organic Global Currency and establish The Global Bank (the world central bank carrying out the Organic Global Currency).
Furthermore, UNGC is in charge of overseeing The Global Banks.
3. The Global Bank (The Globe)
The Global Bank or The Globe is the executing body (executive) of the UNGC general plan to make a common currency. The Globe is under UNGC supervision.
The Globe is a central bank that issues international currency OGC (Globe) and regulates the circulation in all member countries. The Globe makes executive policy and all necessary research.
The Globe has branches in each country (The Globe Local). The Globe Local works with local (state) central banks to regulate the circulation of Glob and the exchange rate with local currencies. The Globe Local is leaded by a governor and may not come from a country where The Globe is located.
After The Global Bank is established, voting rights for each country are determined based on the amount of Glob currency outstanding in the country on average every year.
The amount of currency is chosen as a benchmark for voting rights because it is a representation of the interests of each member country. The Global Bank was established for monetary purposes. And monetary interests are represented by the money outstanding. The weight of each country’s interest is reflected by the number of Globe they use.
Contributions from all member countries are needed to fund The Globe operation. In order to impose proportional fees, the fees is proportional to the average use of the Globe by member countries for one year.
The Globe is a non-profit institution, so all seignorage (profits from issuing new money) will be returned to each member country where Glob are needed.
4. Ideal Number of Member Countries in the Initial Stage
Ideally, when it is established, The Globe has members who control 50% of all global trade. Because with the amount of 50% the benefit on each member country is significant.
Glob currency is used only among member countries. So, there will be a lot of Glob usage in each country if there are many members. And in contrary, it’s only a few, if the number of members is small.
Start from Small
But this does not mean that the OGC cannot be built with a small number of member countries. The OGC system can still be established even though the number of members is only 10 countries such as the ASEAN countries. With a small number of members, the OGC system can still be established and the entire system may function perfectly. The most important thing is that even though there are few in number, the membership system is fully open so that it will attract other countries to join after overseeing the optimum benefits on the OGC system.
Starting OGC with a few member countries is still better than not at all. Because the OGC system will be very disruptive, perhaps even the greatest in the history of the world economy in the past few centuries. So the beginning with a few members is just the beginning. Then the OGC system will roll like a snowball and attract all countries in the world to join.
Starting from the Region
If the OGC starts with a few member countries, it will be more optimal if these countries are within the region. Because countries in one region tend to have more transactions between than other countries that are far away. Countries in ASEAN for example, have transactions between countries that are larger than with other countries outside of ASEAN.
The advantages of the countries in one region do not lie in the similarity of ideology, regional, or other proximity, because in the OGC system the similarity of these things is not a required at all. The only advantage of countries in one region is because these countries have relatively large amounts of transactions between. Meanwhile, in the OGC system, the Glob currency is used only by fellow members. If it is built in countries in one region, the amount of OGC will be more than in non-regional countries.
When it starts from one region, the OGC membership system remains open. This means that countries outside the region have the same right to join. Regional countries only became the first pioneers of the system, or pioneer countries.
Inter-regional countries can also form an OGC system and then join other regions, or multi-regional. By that way, countries in each region will have relatively more transactions with countries in one region, as well as joining other regions. This regional cluster system will increase the amount of Glob usage and increase benefits for each member country.
Superpower Is Not a Must
In 2009, China invited the world to build supercurrency, a global currency backed up by the strongest currency in the world (US Dollars, Euro, Yen and Yuan). The President of the United States, Barrack Obama, rejected because he thought the US Dollars was still strong enough to become an international currency. After that there was no discussion about the plan to make supercurrency.
China is currently the second largest economic power after the USA, which in the next dozen years will replace the position of the USA. Why can’t China build supercurrency alone without inviting the USA? Because supercurrency, even though it consists of several countries, is a type of adopted global currency or tyrannical currency that must be supported by very large economic forces. Without the combined strength of several economic superpower, supercurrency cannot be formed.
This is a supercurrency weakness. If you want to build a single supercurrency, you must be able to combine all the biggest economic forces in the world. Without a combination of the strongest countries, supercurrency cannot be built. So an agreement from all superpower IS A MUST. Supercurrency cannot be formed without.
Unlike supercurrency which still uses the AGC system (Adopted Global Currency, i.e. the currency of a country or region used outside its territory), OGC does not require a superpower. OGC is used only in member countries and does not expand to other countries, so that the economic strength of member countries is not needed. OGC is a democratic system so it does not need a superpower.
So to build Organic Global Currency, initiation can be started by any country without having to wait for approval from any superpower. If there is some of mediocre countries, as long as they have international trade with other member countries, and have the eager to build a common global currency system with the OGC platform, then the system can be built, regardless of the number of members.
Of course the presence of a superpower state will be more beneficial because the use of Glob is more and thus the effectiveness is greater. So the presence of a superpower when the OGC founded is necessary and very helpful but not mandatory if they are difficult to join. Because after the system is established, sooner or later all countries, including superpower countries, will join after. Only a matter of time.
Something we have to keep in mind is that Organic Global Currency is a fully democratic system, based on equality principles and sustainability. Therefore, if there is a superpower that joins the system, the equality principle for all remains the main value and cannot be shifted by any force. Because only with this equality principle and sustainability, all countries in the world will join, without exception.
5. Fully Democracy
The history of the United Nations gives us a lesson that superpower countries tend to put their interests above other countries in the world and ignore basic democratic values. When this “less democracy” principle has been established, it will be very difficult to change even when our civilization has far changed and the world geopolitical has changed considerably. The old system still doesn’t change.
So in Organic Global Currency, equality and sustainability basic principles with a very far-sighted in the future, must be put in place from the beginning. Because once this system is built, it will be very difficult to change in the future.
Wherever this Organic Global Currency is built, and whoever pioneers it, it will belong to the world because all countries can join and have equal voting rights proportionally, even though the country has just joined. When initiations are carried out by several countries, for example, it does not mean that the countries that are the pioneers will then “own” and determine where the OGC system is going beyond the other countries. The founding countries or initiating countries will not have greater rights than other newly joined countries.
The initiating countries will indeed put the first stone in establishing a shared global currency. But after other countries have joined, all will have the same rights without any privileges belong to the founding countries. All newly joined countries still have the same rights proportionally as the founding countries. Thus, the Organic Global Currency is fully democratic, not leaving the slightest tyranny or cartel internally.