The Federal Reserve System was introduced in the United States of America in 1913. The system was established to address few issues faced by the financial sector of the government prior to the establishment of the system. However, the operation of the system is based upon an ever-increasing debt model. Under this system, currency is made out of nothing. All currency created through this system is supplied to the public with a certain amount of interest attached to it. All the principal currency and debt in the form of tax are to be resettled to the Federal Reserve System. Since the government cannot make new money to settle the debt, the government has to borrow more money from the system. As the model requires paying debt on all money that was ever created, the debt will be ever-increasing. Unless this system collapses, there will be no way of settling the debt. Each time the debt reaches the limited magnitude, the debt limit is lifted to a higher magnitude as a temporary solution. This has been happening ever since the system was in place.Most world leaders have shown their interest of having a currency that is common to the world. Since the US Dollar is the world reserve currency, the system that creates the US Dollar affects the entire world economy. If there would be a one world currency, then the Federal Reserve System would not affect the entire economy of the world. As per the current financial processing, trades of all currencies are done by purchasing the US Dollar first. If there would be a common currency for the world, it will eliminate a number of issues in the current financial systems.Foreign currency exchange market is the largest by volume of trade in the world. It is estimated that in the year 2015, more than 5.8 trillion US Dollars are traded every single day in this market. The entire foreign currency exchange market relies on the concept of the world reserve currency. If there was not a world reserve currency, and there was a common currency for the world, then the foreign currency exchange market would not exist.There are a number of issues in establishing and practicing a world currency. It is similar to the establishment of Euro in the initial member states of the European Union. The currency values of the nations should be exchanged into the new world currency in order to begin using the new currency. This is a hard but a possible part.There should be a central organization that monitors the monetary policy. The concept of banking cannot be incorporated into the new world currency system because it will follow the current system. There has to be a control mechanism where a new organization is in charge. The new organization should not borrow money from any other institution, and it should not lend money to any other financial institution. There are approximately 15,000 banks and credit units all over the world. All of these institutions have different numbers of branches. All of this should be covered by the new monitoring institution. There have to be branches all over the world to cover the same operation as the currently existing financial institutions.This would mean the end of private banking sector. If the reserve system is not to operate, then there will be no interest added to deposits. There will also be no interest due for loans. There has to be a regulation to lending money to people. In fact, such a system cannot operate before a one world government is in place. If the different regions of the world had different financial policies, then the control of the new currency would be very difficult. To begin using such a currency, the financial policy should be unanimous all over the world.If a one world government is in place, then the government should be able to provide all the citizens with basic needs of life. There cannot be private institutions that can control the money. No private institution should be allowed to lend money to anyone. No one should be allowed to borrow money from anyone other than the new world currency control institution. It is a far more complex process. The current system wouldn’t migrate immediately towards a one world currency. Even if it did, the value of properties and goods will have to be calculated and maintained in terms of the new world currency. It will be much difficult to compare prices of similar goods in different locations of the world.A car would be less valued in a location where cars are manufactured. In the new system, the same car should be sold or held at the same value all over the world. So the initial valuation of properties will create a greater difference in values of similar products in different locations. This might cause public uneasiness. People might not agree to such a system thinking that their property values will get lower in such a system.Private banks and institutions will lose control of the money. Most institutions will lose the means through which they make profit. Naturally the owners of private financial institutions will not agree to such changes. Corporate businesses and individuals who are earning their profits mainly through marketing will lose their profits. If a particular product is sold at the same price all over the world, then the profits made marketing will not be there. This will create a bigger impact on marketing firms. The owners of marketing firms will not like the idea too.If such a new system comes to pass, then the wages of similar professions all over the world will have to be the same. A physician in one end of the world will get the same wage as the physician at the other end of the world. The poor regions of the world will no longer be poor. If the new system comes in, then people will not need to migrate from region to region just to do the same job but with higher wages.The original manufacturers like farmers and fishermen will get the maximum benefit. Their products will be bought at uniform prices all over the world. The system will not allow big businesses to sell the products at much higher prices in some other location of the world. The least earning people of the world are the ones doing labor work or using their physical stamina to do work. These are the people who spend much of their time and energy to provide for all the other people in the world. These people will naturally earn much money than other people in the new system.It is a very hopeful system but not an easy to establish system. Majority of the world has to agree to such a system. All the people should be willing to migrate into the new system at once. If only few parts of the world would operate under such system, it wouldn’t work properly. The political, social, economic and religious sectors of the world should first migrate into a one world concept. Only after that could a system like one world currency be established.