WI - The Latin Monetary Union uses fiat currency from the outset

This is not an impossibility, in my opinion, especially if the UK ends up joining the Latin Monetary Union which I've heard was a possibility..

I would imagine if such a thing occurred an international bank would be set up in Switzerland with a board containing members from each of the abiding states. All the paper currency would then be convertible in any of the member state for the same amount of gold (of course as is the way with gold backed currency ends up not ever being converted). This would do two things, one it would make it only on gold which is good for getting AH for example to join, second it makes it that should there be a shock in gold they can just leave the gold standard and float free.

However how can this situation be brought about? What further ramifications would there be? When would countries start to leave?
 
Top