Leaders of the Muslim world have pressed for alternative currency for use in trade and seek independence from US Dollar, at the recently concluded Kuala Lampur Summit 2019.
“Instead of doing trade using foreign currency, we would like to trade with our own national currencies. Financial markets are fragile to shocks and manipulation. To avoid this, we should try to create new transaction systems, said Turkish Presdent Recep Tayyib Erdogan, quoted the Malay Mail.
“As trade war is a problem today, issues on trade must take priority. We have to make Islamic finance part of our agenda and Malaysia has already started pioneering the role of having an alternative Islamic finance,” he said.
Meanwhile, Iran’s President Hassan Rouhani was of the view that Muslim nations should come up with its own cryptocurrency, saying that Malaysia’s Prime Minister Tun Dr Mahathir Mohamad’s previous dream of utilising the Islamic dinar for trade can come true with the digital coin.
“With new blockchain technology, we would be able to introduce a united cryptocurrency to Muslim states with the cooperation of our central banks. In the past, Dr Mahathir had wanted to introduce the Islamic dinar. With such technology underway, we can set up a new currency for the Muslim world. The benefit of cryptocurrency is that it can cut through bureaucratic and market fluctuations,” said Hassan.
He added that utilising cryptocurrency or national currency for trade among Muslim nations would help attain independence from over-reliance on the US dollar.
Prominent leaders from some of the world’s most populous Muslim-majority countries met in Malaysia’s capital on Dec 18, Thursday until Dec 21 to address issues such as Islamophobia and poverty, with the organisers insisting the event is not meant to rival the Organisation of Islamic Cooperation (OIC).
Malaysian Prime Minister Mahathir Mohamad presided over the meeting with fellow heads of state, President Hassan Rouhani of Iran and President Recep Tayyip Erdogan of Turkey. Qatar’s Emir Sheikh Tamim bin Hamad Al Thani. It also included government officials, scholars and leaders from various non-government sectors from several Muslim countries. But there were also notable absences, including the leaders of Indonesia, Saudi Arabia and Pakistan.
Dr. Mahatir laughed off suggestions that the event is meant to create a new bloc that could compete with the OIC, an intergovernmental grouping of 57 countries that was established in 1969. He said political observers are “reading too much” into the summit.