Everyone knows about the benefits of currency hegemony, but only a few countries are qualified to enter the fray. To qualify as an international trade settlement currency, the following basic conditions must be met:
1. The economy of the currency-issuing country must be significantly large;
2. The volume of imports and exports of the currency-issuing country must be substantial;
3. The currency itself must have a stable exchange rate;
4. The currency-issuing country must have the ability to guarantee the conversion of its currency;
5. Ideally, the currency-issuing country is also the world's policeman.
In modern times, the British were the first to meet these requirements, which is why the British Pound became the earliest international currency.
However, limited by communication and the low degree of economic globalization, the British Pound's proliferation was not smooth, and gold and silver remained more popular for international settlements.
