Fiat Currency Concerns Give Rise to a Gold & Silver Backed Online Payment System

October 2nd, 2006

October 2, 2006 -

Came across this site which is pretty interesting. There is a company incorporated in the United Arab Emirates and Malaysia that offers gold and silver backed online transactions, though fees are quite high at 1% of transaction and an additional 1% storage fees.According to the website, this is how the system works: “the e-dinar is the name of an internet based electronic payment and exchange system that facilitates online transactions 100% backed by physical gold and silver. e-dinar and e-dirham are the electronic units used within the e-dinar system.

Each e-dinar electronic unit corresponds to an exact, fixed weight of 4.25 grams of pure 24k gold. Each e-dirham corresponds to an exact, fixed weight of 3 grams of sterling silver. These units are infinitely divisible thus allowing large as well as very small transactions.

The physical gold and silver bullion backing e-dinar and e-dirham units are always equivalent or larger than all electronic e-dinar and e-dirham in circulation. The physical gold and silver bullion is held securely in internationally renowned bullion repositories.

Transactions are executed using e-dinar and e-dirham units and, as a rule, do not result in physical movement of gold or silver in the bullion repository. The exception are large transactions of at least $150,000.- USD where gold bars are physically moved between pallets.

Account holders always have the option to exchange their e-dinars an e-dirhams into any major national currency or redeem them and take physical possession of an equivalent amount of gold dinar and silver dirham.”

Pretty interesting system of payments.

Entry Filed under: Invest in Gold