The topic of implementing a global digital currency has become increasingly relevant in recent years, making it a potential subject for IELTS Writing Task 2. While not a frequent theme, its growing importance in the global economy suggests it may appear more often in future exams. Let’s explore this topic through a sample question and multiple band-scored essays.
Some people believe that implementing a global digital currency would benefit the world economy, while others think it could lead to economic instability. Discuss both views and give your own opinion.
Analysis of the Question
This question requires candidates to:
- Discuss the potential benefits of a global digital currency
- Explore the possible drawbacks and risks
- Provide a balanced argument
- State and justify their own opinion
Now, let’s examine three sample essays of varying quality, representing different band scores.
Sample Essay 1 (Band 8-9)
The prospect of a global digital currency has sparked intense debate among economists and policymakers. While proponents argue that such a currency could revolutionize international trade and financial inclusion, critics warn of potential economic instability. This essay will examine both perspectives before presenting my own viewpoint.
Advocates of a global digital currency assert that it could significantly streamline cross-border transactions, reducing costs and processing times. This efficiency could particularly benefit developing nations, enabling them to participate more fully in the global economy. Furthermore, a universal digital currency might promote financial inclusion by providing access to banking services for the unbanked population worldwide. These advantages could potentially stimulate economic growth and reduce global inequality.
However, opponents raise valid concerns about the potential risks associated with a global digital currency. One primary concern is the loss of monetary policy autonomy for individual nations, as a global currency would likely be managed by a central authority. This could limit countries’ ability to respond to local economic challenges. Additionally, the implementation of such a system would require unprecedented international cooperation and could be vulnerable to cyberattacks, potentially destabilizing the global economy.
In my opinion, while the concept of a global digital currency offers intriguing possibilities, the risks currently outweigh the potential benefits. The complexity of implementing such a system on a global scale, coupled with the potential for economic instability, suggests that a more gradual approach might be prudent. Instead, I believe that improving existing international payment systems and promoting the responsible development of cryptocurrencies could achieve many of the desired benefits without the associated risks.
In conclusion, the debate surrounding a global digital currency highlights the complex challenges facing our increasingly interconnected world economy. While the potential benefits are significant, the risks and practical hurdles cannot be ignored. As technology continues to evolve, it is crucial that any steps towards a global digital currency are taken with careful consideration and robust safeguards to ensure economic stability and equitable benefits for all nations.
(Word count: 329)
Explanation of Band 8-9 Score
This essay demonstrates several qualities that contribute to a high band score:
Task Achievement: The essay fully addresses all parts of the task, discussing both views and clearly stating the writer’s opinion.
Coherence and Cohesion: The essay is well-organized with clear paragraphing and effective use of cohesive devices (e.g., “However,” “Furthermore,” “In conclusion”).
Lexical Resource: The writer uses a wide range of vocabulary accurately and appropriately (e.g., “streamline,” “autonomy,” “unprecedented”).
Grammatical Range and Accuracy: The essay showcases a variety of complex sentence structures with minimal errors.
Critical Thinking: The essay demonstrates a nuanced understanding of the topic, considering multiple perspectives and potential implications.
Global digital currency concept illustration
Sample Essay 2 (Band 6-7)
The idea of a global digital currency is a topic that many people are talking about these days. Some think it would be good for the world economy, while others worry it might cause problems. In this essay, I will discuss both sides and give my opinion.
On the positive side, a global digital currency could make international trade easier. People and businesses wouldn’t have to worry about exchanging different currencies when buying or selling things in other countries. This could save time and money. Also, it might help people in poor countries who don’t have access to banks. They could use digital currency to save money and make payments, which could improve their lives.
However, there are also concerns about a global digital currency. One big worry is that it could be risky if something goes wrong with the system. If there’s a technical problem or a cyber attack, it could affect the whole world’s economy. Another issue is that different countries have different economic situations. A global currency might not work well for all of them, especially if they can’t control their own money policies anymore.
In my opinion, while a global digital currency has some benefits, I think it’s too risky to implement right now. The world’s economies are very different from each other, and it would be hard to find a system that works for everyone. Maybe in the future, when technology is more advanced and countries can work together better, it could be possible.
To conclude, a global digital currency has both good and bad points. It could make trade easier and help some poor people, but it also comes with risks and challenges. I believe we need to be careful and think more about how it would affect different countries before making such a big change.
(Word count: 298)
Explanation of Band 6-7 Score
This essay demonstrates characteristics that place it in the Band 6-7 range:
Task Achievement: The essay addresses all parts of the task, discussing both views and providing an opinion. However, the ideas could be more fully developed.
Coherence and Cohesion: The essay has a clear structure, but the use of cohesive devices is sometimes repetitive (e.g., overuse of “Also” and “However”).
Lexical Resource: The vocabulary is adequate for the task, but lacks the sophistication and precision of higher band scores.
Grammatical Range and Accuracy: The essay uses a mix of simple and complex sentences with generally good control, though there are some minor errors.
Critical Thinking: The essay presents relevant ideas but lacks the depth and nuance of a higher band score essay.
Sample Essay 3 (Band 5-6)
Nowaday, global digital currency is a big topic. Some people think it good for world economy, but others worry about problems. I will talk about both sides and give my idea.
First, global digital money can help trade between countries. Its easier to buy and sell things if everyone use same money. Also, poor people who dont have banks can use digital money. This is good for them.
But there are bad things too. If computer system has problem, it can make big trouble for all countries. Also, different countries have different money rules. Global currency might not be good for all of them.
I think global digital currency is not good idea now. It’s too dangerous because if something go wrong, all countries have problem. Maybe in future when technology is better, we can try it.
In conclusion, global digital currency has good points and bad points. It can help trade and poor people, but also has risks. We need to think carefully before making this big change.
(Word count: 159)
Explanation of Band 5-6 Score
This essay exhibits characteristics that place it in the Band 5-6 range:
Task Achievement: The essay addresses the main points of the task but in a limited way. The response lacks depth and full development of ideas.
Coherence and Cohesion: There is a basic structure, but paragraphing and use of cohesive devices are limited.
Lexical Resource: The vocabulary is limited and repetitive, with some errors in word choice and spelling.
Grammatical Range and Accuracy: The essay uses mostly simple sentences with frequent grammatical errors.
Critical Thinking: The essay presents some relevant ideas but lacks the analysis and depth required for higher band scores.
Benefits and risks of global digital currency
Key Vocabulary to Remember
Digital currency (noun) /ˈdɪdʒɪtl ˈkʌrənsi/: Money that exists only in electronic form.
Implement (verb) /ˈɪmplɪment/: To put a plan or system into action.
Economic instability (noun phrase) /ˌiːkəˈnɒmɪk ˌɪnstəˈbɪləti/: A situation where an economy experiences frequent fluctuations in its performance.
Cross-border transactions (noun phrase) /krɒs ˈbɔːdə trænˈzækʃnz/: Financial dealings that occur between individuals or entities in different countries.
Financial inclusion (noun phrase) /faɪˈnænʃl ɪnˈkluːʒn/: The availability and equality of opportunities to access financial services.
Monetary policy (noun phrase) /ˈmʌnɪtri ˈpɒləsi/: The actions of a central bank to influence the amount of money and credit in an economy.
Cyberattack (noun) /ˈsaɪbəræˌtæk/: An attempt to damage, disrupt, or gain unauthorized access to a computer system or network.
Streamline (verb) /ˈstriːmlaɪn/: To make a system or organization more efficient and effective by employing faster or simpler working methods.
Autonomy (noun) /ɔːˈtɒnəmi/: The right or condition of self-government.
Unprecedented (adjective) /ʌnˈpresɪdentɪd/: Never done or known before.
In conclusion, the topic of implementing a global digital currency presents a complex challenge that requires careful consideration of its potential benefits and risks. As demonstrated by the sample essays, a strong response to this topic should address both perspectives, provide a balanced argument, and offer a well-reasoned personal opinion.
For further practice, consider writing your own essay on this topic or exploring related themes such as the benefits and drawbacks of a cashless society. You might also want to prepare for similar topics that could appear in future IELTS exams, such as:
- The impact of cryptocurrencies on traditional banking systems
- The role of central banks in regulating digital currencies
- Privacy concerns in a fully digital financial system
Remember to focus on developing your ideas fully, using a range of vocabulary and sentence structures, and maintaining a clear and coherent argument throughout your essay. Feel free to share your practice essays in the comments section for feedback and discussion with other learners.