OK, we (me and all those free-market thinker on these boards) can agree that competing currency is a good thing because it stabilizes value and numerous other factors. How, in a globalized economic world, would the various means of exchange have security (stability, protection from fraud, etc), and thus value, when not used in the "home market?" I can think of two ways
1) International Banks which decentralizes currency. The banks currency would have different real values in each country/region it operates in, but would be usable nearly everywhere
2) National governments, a currency backed by the government that competes with currency created in the home markets but is globally recognized as having a real and transferable worth.
Can you think of others? Are there inherent problems with either of the two above examples? Is there a way to eliminate any of the problems those may have?