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For the U.S., it would likely mean less access to capital, higher borrowing costs and lower stock market values, among other effects. Having the world's reserve currency has allowed the U.S. to run large deficits in terms of both international trade and government spending.

Using a single currency makes doing business and investing in the euro area easier, cheaper and less risky. By making it easy to compare prices, the euro encourages trade and investment of all kinds between countries. It also helps individual consumers and businesses to secure the best prices.

All nations use currency of some kind, but there are many nations which do not issue currency of their own. Ecuador, East Timor, El Salvador, the Marshall Islands, Micronesia, Palau, Turks and Caicos, and the British Virgin Islands all use the U.S. dollar.

A currency union (also known as monetary union) is an intergovernmental agreement that involves two or more states sharing the same currency. These states may not necessarily have any further integration (such as an economic and monetary union, which would have, in addition, a customs union and a single market).

Still, "no other currency has the recognizability, stability and economic might behind it," South Africa-based money manager Vestact said in a note to clients, per Bloomberg on May 10. "The only currency that is vaguely close to being able to replace the dollar is the euro."

What Is a Currency Union? A currency union is when two or more economies (usually sovereign countries) share a common currency or mutually decide to peg their exchange rates to the same reference currency to keep the value of their monies similar.

Less transactions costs. Price transparency. Less uncertainty. Benefits of an international currency. Does monetary union lead to more economic growth?