Advantages And Disadvantages Of Gold Dinar

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Gold dinar is the gold coin that was issued since ancient time and was used as a currency because it is a stable measure of value and being used as a medium for exchange either buying or selling. There were a good sight and also a bad sight regarding the implementation of the gold dinar in international trade which is has been used for a long ago. Gold dinar also have a few advantage and disadvantage when using gold dinar system in international trade. Firstly, the advantage is Gold Dinar are compliant with Shariah law. As we can see, this currency is aim to revive historical gold from the beginning of Islam until the end of the Khalifah. Gold Dinar also approved by Shariah law of deen. It is additionally mentioned in the Qur’an, and sunnah. It shows that it will free from riba, gharar and maisir. For example, there will no Riba al-Fadl which implies (interest with further commodity). For instance, as Government will no longer be able to absolutely influence the circulation of gold. In Asia, it have a few Muslim countries that using a Gold Dinar as currency, for example Indonesia which…show more content…
Not many country having ability to produce the gold dinar if this gold dinar been apply as medium transaction for international trade due to the lack of natural resources in their own country, so they maybe need to get this gold supply from outside where it will increase the cost for the overall operation. In another situation where gold dinar also have a few limitation because most of gold dinar are issued privately and are not legal tender. For example, state government of Kelantan allows gold dinar to be used in transaction in their own state but while it is illegal to used it outside Kelatan due to federal law where only allowing transaction to accept the Ringgit Malaysia inside Malaysia. So, this means that the Gold Dinar has a limited
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