Explain the concept of different currencies and why there is no singular world wide currency/ what are benefits and downsides of having a world wide currency?
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For a while it was thought that having a fixed exchange rate between currencies (equivalent to just having one currency) was necessary for international trade. This haves us the gold standard where many currencies were tied to the price of gold. Unfortunately this system is difficult to maintain, because currencies would naturally drift, and so governments had to work to keep them at the right exchange rate, with varying success.
The important feature of currencies that governments don’t want to give up is the ability to drive the value up or down, and so influence their own economy. You may have heard about central banks printing money, or devaluing a currency; things that would not be possible if that bank was only part of a larger currency union.
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