Increasingly, countries are beginning to openly express their intentions to strategically explore using gold as a medium of exchange in the coming years.
The Malaysian government is now considering using the gold dinar as a reserve currency to reduce dependence on the US dollar.
The Prime Minister mentioned this will be discussed in the forthcoming December meeting on Islamic economics and finance.
He went on to say: "If we can get between five and six percent with Islamic countries (using dinar), it would be a positive start as it provides strength and reduces dependency on the US dollar."
In Sharia law, gold is defined as a "Ribawi item," meaning Muslims are NOT permitted to trade it for speculative gains or anticipated future value.
However, in Islamic culture, gold holds a unique position, being both a form of currency and a cherished form of jewelry.
In fact, in 2019, the former Prime Minister of Malaysia, Mahathir Mohamad, said that Iran, Malaysia, Turkey, and Qatar contemplated trading in gold and creating a barter system to safeguard against future economic sanctions.
"I have proposed that we reconsider the concept of trading with the gold dinar and barter among us," the former Malaysian Prime Minister said, alluding to the medieval Islamic gold coin.
The idea of using a gold-backed currency has resurfaced, with discussions set for December.
The gold dinar, originating as a medieval Islamic gold coin, was first minted by Caliph Abd al-Malik ibn Marwan in 696–697 CE.
Malaysia is one of many countries looking to engage with other Islamic countries leveraging gold to reduce its reliance on the US dollar.
Illustrating this point, the Central Bank of Iran is in talks with Russia about creating a gold-backed stablecoin for trade settlements.
Earlier this year, Russia's Deputy Prime Minister mentioned the potential of establishing an independent financial system in collaboration with Islamic nations.
As Iran and Saudi Arabia prepare to join BRICS, considering the swift gold accumulation by many countries in this economic bloc, one must ponder its reason.
Increasingly, gold is becoming the heartbeat of the global monetary reset which is currently unfolding.
Original source: Gold Telegraph
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