KUALA LUMPUR April 29 - Using debit cards could be one way to conveniently
conduct gold dinar trade transactions, an academician said here today.
The coordinator of Gold Dinar Research Group of Universiti Sains Malaysia
(USM) Prof Madya Dr Hakimi Ibrahim said that such a debit card using
smart card features would be able to show just how much is left in the
reserves to carry out business.
This would make it easier for the people to carry out their business
transactions without having to physically carry gold dinar around, particularly
those involving large sums of money, he told reporters when asked to
comment on the mechanism of using the gold dinar as a currency.
The smart card meanwhile is being fine-tuned by e-Dinar Ltd, particularly
the legal areas as the company is an off-shore facility operating in
Labuan.
Dr Hakimi said that in order to make it easier for people to carry
out their transactions using the smart card, the company should have
its operations in Kuala Lumpur and other places in the country.
He said e-Dinar Ltd was established in Labuan as an offshore facility
to enable those wanting to use the gold dinar electronically through
the internet, another mechanism through which the gold dinar can be
used.
"This e-dinar provides us the convenience of carrying out sales or
purchase of goods or all country-to-country financial dealings, domestic
dealings and others through the internet," he said.
Dr Hakimi said that currently the gold reserves of e-Dinar Ltd was
in the form of gold bullion and not in the form of gold dinar and they
are kept in Dubai. To further facilitate gold dinar transactions in
the country, he said that the gold reserves as kept by companies such
as e.Dinar need to kept within the country itself and in the form of
gold dinar physically and not in the form of gold bullion.
Solid gold dinar can be created in this country through the Islam mint
which could be a body that carries out the preparation and production
of money.
"Whether the Islam mint is a single body or consists of several government
bodies through Bank Negara as an example, it would ensure that gold
dinar is available widely not only for international use but also local
use," he said.
He said permission such as that given to Royal Mint by Bank Negara
to print Malaysia coints and the formation of vendors by the company
throughout the country for as coins centre, is one way to widen the
production of gold dinar in the country.
There are many parties wanting use the gold dinar as currency due to
its intrinsic value.
"One dinar is now valued at RM165, so for major transactions we can
use it," he said.
However, when the gold dinar is used, the value of the ringgit will
be pegged to the dinar and the ringgit can valued by its own, and not
as pegged to the US dollar currently.
Currently the body that evaluates the US dollar is the US Federal Reserve,
he said.
Dr Hakimi said that the gold dinar can be implemented in the country
as gold from Indonesia and Dubai have already reached in Malaysia.
He said he was confident that in the long term, that the international
community would accept the use of gold dinar as they will realise sooner
of later that the dinar has a real value. wards economic unity among
Muslim communities.
Dr Mahathir proposed last year that the dinar be used as an alternative
currency for international trade, especially among the Islamic countries,
and Malaysia already has the mechanism for it.
The proposal was to source for an alternative system in the wake of
the uncertain economic situation because the conventional system is
vulnerable to currency manipulation and speculation.
At the dialogue, Dr Mahathir also launched four books published by
IKIM - "Ekonomi Islam dan Pelaksanaannya di Malaysia" and "Corporate
Goverance from the Islamic Perspective" sponsored by RHB Bank Bhd and
"Kriteria Negara Berasaskan Prinsip Islam" and Peranan Ibubapa dalam
Pembentukan Sahsiah Anak-anak".
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