A nation state is defined by UNESCO as one where the great majority are conscious of a common identity and share the same culture. Currencies and nations
The socio-cultural parts of a nation state form its backbone. Indeed, it is possibly for one nation to have multiple currencies or for many nations to share one. However, with the advent of the Internet, things have been rapidly changing. Traditional borders which were stiff and inflexible have melted away in the sense that today people can work internationally without having to leave the comfort of their own home countries. Sources of tension
Globalisation is a phenomenon that has come to define the age that we live in. Today market forces are considerably stronger than they have been at any point in history. We have come through eras of sail, steam, telegraph and telephone to near instantaneous communication with each other. In this way the world has become more connected but when it actually comes to the physical transport of goods and even people, the world remains as rigid and inflexible as it once was. International migration, refugees and trade and tariff issues are the source of considerable tension in many parts of the globe. Cryptocurrencies dent capital controls
Monetary and fiscal policies are something that nation-states have had in their grip for ages now. The stability of a nation’s currency is, to a large extent, the function of the government of the country. How much money can be taken out of a country is decided by the capital controls that the government decides to impose. Ever since the first ever Bitcoin transaction took place in 2009, cryptocurrencies have dented the power of the governments to some extent. Cryptocurrencies such as Bitcoin are deflationary instead of inflationary and therefore are fundamentally free […]
