Gold may not be money today but parts of the world seem to be exploring the incorporation of gold to their respective monetary system (e.g. Malaysia’s Islamic gold dinar).
From the IBTimes.com
The Swiss parliament was scheduled to debate Tuesday the wisdom of creating a new gold-backed national coin that would float in parallel with the Swiss franc, becoming the first national legislature in decades to consider issuing a currency based on a commodity.
The proposal was first introduced in March 2011 by three right-wing legislators as part of what they termed a "healthy currency" initiative. It seeks to modify the Swiss constitution, instructing the nation's central bank to issue a new national coin with a fixed gold content that would complement, though not replace, the Swiss franc.
A press release described the legislative action as seeking "an attractive alternative to the Swiss franc as a safe haven, given how franc appreciation has continued as a result of currency turmoil outside Swiss international borders." The move would reduce some policy-making power from the Swiss National Bank, the nation's issuer of legal tender, by forcing it to issue a currency at a fixed rate to gold.
The mainstream may not like it, but forces of decentralization appear to ushering in the gold standard. Once a major economy, like Switzerland, successfully brings the gold standard partly back in operation, then gradually more nations (most likely emerging markets) can be expected more to hop in.
No comments:
Post a Comment