Advantages of the BPALC and E-Dinar SystemBPALC System - Proposed ByMalaysian
GovernmentE-Dinar - Private Electronic GoldPayment Company
1. Controlled by the central banks of theimporters and exporters.1. It is privately
owned2. The importers and exporters could usethe bank facilities to finance
theirtrade.2. Eliminates the needs of the third parties3. No physical gold is transferred,
only if necessary3. Open to all who want trade or maintainaccount in gold
denomination4. Eliminate the exchange losses andcurrency risk 4. Real time processing
transaction and nocredit exist in anywhere in the system5. It is the same as the normal
BPA exceptthat it is denominated in gold5. Eliminate the exchange losses andcurrency
risk 6. It could be designed according to thesyariah law6. It is designed according to the
syariah law7. Suitable for big players in the importand export markets.7. Could be
catered for the e-commercebusiness (small and medium industry).8. Advantages for
businesses who acceptpayment in e-Dinara)
Nearly instantaneous clearing and fundsavailabilityb)
Low processing fee - 1%, or at most USD50 cents debited in metal9. Stable store of
value and diminishedexchange risks10. Divisibility, security, fungibility, andportability.
The usage of Dinar is well rooted in history of the world though it has beenabandoned.
Great strides are being made in going back to Dinar, with the support of the
Government and the encouragement and guidance of Central Bank of Malaysia,
toensure that Dinar becomes a truly viable alternative trading currency among
OICcountries. If the OIC countries are to agree to accept the Gold Dinar, evaluation on
thecapability to implement it must also be conducted.As for the implementation of the
gold currency, both systems have their ownadvantages and target market. Regardless
of mechanisms being used, as long as thetrade transactions use gold as their medium
of exchange, it is acceptable. Theelectronic gold payment system is a promising
mechanism but need more work to bedone. The technological or computer literacy
plays an important role in ensuring thesuccess of the e-Dinar system. As for Malaysia’s
e-commerce industry, the number of players is still small, which is 1 percent from the
total online users.Failure in persuading the online users to shop online would become a
major problemto the electronic payment system companies because without the online
shop online, then the system proposed will only look good in theory. As for now, theBPA
system looks promising because this system transacts in a large scale
betweenexporters and importers in participating countries. The goods imported by
theimporters then would be resold in the countries to the end consumers. On the
otherhand, the wholesalers and retailers would buy from these importers and they do
notdeal with the Gold currency but transact in their local currencies before
distributingthe goods to the end consumers. However, with the level of acceptance in
using thegold currency keeps on increasing, and with extensive promotions in the usage
of E-Commerce and Gold currency, the electronic payment system using gold
asdenomination could become a reality in trading system. The mechanisms are
onlywaiting for us to put them in place: it is now the right time for us to act for the sake
of the Al-Mighty, His Messenger, ummah and unity of the Islamic countries.
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