Malaysia's potential revolution: embracing gold-backed cryptocurrency into international net settlement via blockchain could transform economic and financial resilience

• Main Authors: Mushaddik, Irma Naddiya, Jalal Nore, Abdul Wahed
• Format: Article
• Language: English
• Published: International Islamic University Malaysia 2023
• Subjects: BPH Islamic Economics
• Online Access: http://irep.iium.edu.my/109789/7/109789_Malaysia%27s%20potential%20revolution%20embracing%20gold-backed.pdf; http://irep.iium.edu.my/109789/; https://journals.iium.edu.my/jiasia/index.php/jia/article/view/1188; https://doi.org/10.31436/jia.v20i3.1188
• Institution: Universiti Islam Antarabangsa Malaysia

This research delves into the potential of a gold-backed cryptocurrency as a strategic instrument for international net settlement, leveraging blockchain technology, and assesses its global economic implications. Through a comprehensive evaluation of the efficiencies derived from integrating a gold-backed cryptocurrency, this study critically examines the prevailing use of fiat currency in international net settlement, laying the groundwork for fortified financial resilience within Malaysia's Islamic finance framework. To fulfil the study's overarching objective, a qualitative research methodology was meticulously applied, encompassing content analysis alongside insightful semi-structured interviews. The argument put forth underscores that a cryptocurrency backed by gold represents a superior alternative to fiat currencies in facilitating international net settlement through the robust medium of blockchain technology, ushering in characterized by compatibility and enhanced efficiency. Furthermore, this article posits that the revolutionary potential of blockchain will permeate Malaysia's Islamic financial system, aligning with Islamic finance principles and accelerating international net settlement. This integration is poised to usher in an unprecedented era of growth, efficiency, and innovation while adhering to Islamic financial ethics.