I like to call it gold gram currency just to indicate the weight of the gold in assessing its value. Most Muslims understand it as Dinar.
One of the state in Malaysia uses Dinar, while the country is still using Ringgit (RM) as its currency. Currency usage can't be executed in isolation. It cause more harm and uncertainty that is detrimental to the user.
Example when one purchase paying in dinar, the next day value of dinar went down, and thus causing the problem of holding dinar shrinking in value. The seller ended up losing value of gold in his possession, and may end up losing, since the gold will be used as working capital that is subject to daily fluctuation. Though it may be different if holding the gold for long period of time.
Transition to Dinar may begin by pegging the RM to gold value. Once this is happening, slowly change it to using real gold and silver.
With the current electronic environment, there is really no need to carry kilograms of gold for any purchase.
I strongly believe that transition to using Dinar is possible and will be beneficial to the country, provided that it needs to be done at macro level.
One of the state in Malaysia uses Dinar, while the country is still using Ringgit (RM) as its currency. Currency usage can't be executed in isolation. It cause more harm and uncertainty that is detrimental to the user.
Example when one purchase paying in dinar, the next day value of dinar went down, and thus causing the problem of holding dinar shrinking in value. The seller ended up losing value of gold in his possession, and may end up losing, since the gold will be used as working capital that is subject to daily fluctuation. Though it may be different if holding the gold for long period of time.
Transition to Dinar may begin by pegging the RM to gold value. Once this is happening, slowly change it to using real gold and silver.
With the current electronic environment, there is really no need to carry kilograms of gold for any purchase.
I strongly believe that transition to using Dinar is possible and will be beneficial to the country, provided that it needs to be done at macro level.
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