The Anonymous Widower

Do Politicians Make Too Much Fuss About Currencies?

The Needs Of People

I travel extensively across Europe and after trips like my Home Run From Krakow or my Home Run From Stockholm, I end up with a walletful of assorted zlotys, crowns etc.

But it won’t always be like that, as increasingly contactless cards and smartphones will take over from cash. How long will it be before a lot of public transport in the world uses the London model, where you just touch and go?

So I suspect cash will become very much a method of payment that will not bother visitors.

Other developments will also help.

1. Using Coins

Vending machines, toilets, left luggage lockers and other places that need small cash payments will get intelligent and probably respond to the local currency and a selection of others, like one and two euros, pound coins and dollar quarters.

So a visitor to Europe, would just make sure they topped up their one euro coins.

2. No-Commission on Credit Cards When Used Abroad

The credit card I use abroad, is a Nationwide Select Credit Card and this page on their web site, describes its use abroad. And so far, they’ve done what it says on the tin.

As the card was recommended by one of the Personal Finance Experts on the BBC, it can’t be that much of a con.

All credit cards should be like this!

3. Late Rooms et al.

On my trip to Poland, I used lateroom.com to book accomodation and some of the hotels were paid in zlotys. But I paid in advance in Pounds Sterling.

All of these systems are giving both the seller and the purchaser a bill in the currency they want.

Summing Up The Needs Of People

All people want is a system that buys that drink, meal or rents that room or sun lounger giving them a good rate with no hassle.

The Needs of Business

When it comes to business, I’ve just paid two overseas bills using SWIFT from my Nationwide account. I got charged £20 for each one, which was a bit steep in my view, but these days you can transfer money pretty easily.

The Greedy Bankers

So I come to the conclusion, that on a small transaction basis and that probably means anything under a couple of grand, transactions should be possible on what we have today.

Just look at what you can do with PayPal and an eMail address.

But would greedy bankers and their friends in Central Banks allow multi-currency transactions to become the norm for money transfer between consenting adults or companies?

The Innovators

Just look at how finance has changed in the last few years.

Nothing is cast in stone and who’s to say what will be the financial flavour of 2016.

Every problem is an opportunity for an innovator. And this type of disruptive innovation often hurts established players!

Summing Up The Needs Of Business

A business just wants money transferred to a client or supplier at the best rate instantly, for the lowest possible commission.

So Who Needs A Single Currency?

The only advantage of a single currency like the euro or the dollar, is that you know easily what you are paying and that accounts and paperwork are simpler.

Politicians also say it creates jobs as it encourages industries like tourism.

It may do, but the UK gets masses of tourists and not being in the Eurozone doesn’t seem to be a problem. Visitors are happy to use their credit cards or prepay for everything in their own currency, so it probably illustrates that if you have a good product, then the tourists and money will roll in.

I think it is probably true to say that politicians also like a single currency as it’s a big idea, with which they might leave their mark on history.

I was probably in favour of a single currency for Europe at one time, but I think now, that so many innovations will get round the rules and create lots of jobs, that it is rather an outdated concept.

I much prefer a simple process that allows me to spend pounds everywhere with the best exchange rate and no commission.

In some ways this will be an unrealistic idea, as politicians will protect their useless banks.

But they will have to legislate a ban to stop it.

Remember that politicians don’t understand new technology. Look at the mess they;re all in over Uber.

 

 

 

July 5, 2015 - Posted by AnonW | Finance, World | Europe