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.
