Dinar/Dirham Backed Electronic Payment System For Malaysian Market

In addition to highlighting repeated failures of previous fiat currency systems, this
paper also takes a different approach of revealing the fine performance of gold i.e. as
far as its purchasing power is concerned. This study calculates the price of a few
inflationary items in terms of Ringgit Malaysia (RM), as well as their corresponding
prices in terms of gold (or silver). Having convinced with a fine performance of gold in
terms of its purchasing power, it is therefore the aim of this paper to solve the problem
of “portability” inherited in gold. If gold were to be adopted successfully as a payment
system, the issue of portability should be correctly addressed or else the masses would
not be encouraged to use it. Specifically, this paper proposes the use of e-commerce
technology in order solve the portability problem in gold (or silver). Other “physical
constraints” associated with the two precious metals can also be solved through the
proposed e-commerce system. Apart from that, empirical studies will also be done on
currently operated electronic payment systems in order to study the willingness of
Malaysian people to adopt a new payment system.