The trade and tariff wars being waged between China and the U.S. might have some un-anticipated fallout. The Prime Minister of Malaysia said in a statement recently in Tokyo that perhaps it might be time to create a common currency for trading that would be pegged to gold. And not just for Malaysia but rather a Pan-Asian gold pegged currency for all of East Asia. It seems many countries are getting a bit “tired” of being caught up in currency manipulation, trade disputes, etc where they are bystanders being adversely affected by the conflicts. The PM’s gold pegged currency idea would only be used for trade and not for retail purchases. Gold was selected because it is much more stable than, say something like bitcoin. At least for now. More below.
Bill Taylor/Fintek Capital
“The idea for gold-backed currency got a nod of approval from the Malaysian Prime Minister Mahathir Mohamad, who proposed a common trading currency pegged to gold for all of East Asia.
Mahathir made his statement at the Nikkei Future of Asia conference held in Tokyo last week.
“In the Far East, if you want to come together, we should start with a common trading currency, not to be used locally but for the purpose of settling of trade,” he said on Thursday. “The currency that we propose should be based on gold because gold is much more stable.”
Malaysian Prime Minister described the world as filled with conflicts in which currencies are being manipulated.
“The situation in the world is not stable. We see conflicts everywhere … There is a confrontation between America and China. We are all affected even though we are not part of the contestants,” Mahathir said. “Currency trading is not something that is healthy because it is not about the performance of countries but about manipulation.”
With his gold-backed currency proposal, Mahathir drew the line at settling imports and exports, noting that his idea would not be used in local stores…”