A common currency for Asia. Is it possible?

For

 Asia refers to the entire continent by which 4.5 billion people live in.
o The continent has the most number of people on the planet, and the most amount
of space as well.
o So having this huge population can help in a way.
 Asia is also the most diverse (arguably) in terms of demographics, culture, history,
geography, and in so many aspects
o Asia too is emerging as one of the fastest growing economies in the world and
becoming sources for large investments
o With the initiative of OBOR a common currency can definitely give a boost
 Common Currencies are currencies that two societies (particularly countries) have agreed to
share.
o The most common example would be that of the Euro.
o euro is the best example of a common currency
o Europe has shown that a common currency does and can work a globalised world


Against –
 A CAC (common Asian currency) would simply not work because of the logistics of
implementing it.
 First –
o Each country has varying degrees of economic capability. That means that their
GDPs are so far apart that the currency that will be implemented will most likely be
catastrophic to both High-Income countries and Low-Income countries. This
problem is already present in the EU.
o The differences in the levels of GDP in the European Union has ultimately made
Germany the bail-out card of other European countries. Imagine that situation but
with Japan and Afghanistan.
 Second –
o There is just too much cultural diversity in the continent, that it becomes
irresponsible to just lump every country together in one monetary group.
o It works in the European Economic Zone because of the member’s shared culture
and history, but unlike in the EEZ and EU, Asia is too big to be grouped together in
one financial system
 Third –
o Asia is composed of multiple countries with different interests and economic
systems. There are communist regimes, democratic republics, authoritarian
dictatorships, constitutional monarchies and many more.
o They all have to agree in a monetary and fiscal policy, which the EU is also
struggling to accomplish.
o This would mean that they would have to give up their sovereignty to a higher order,
and no nation in Asia will uphold that.
 Asian integration is a pipe dream say that there is currently no political consensus, not even
the makings of a unified monetary or currency policy, and little convergence on supervisory
policy.
