The Prime Minister of Malaysia, Dr. Mahathir Mohamad, has agreed to Iran’s proposal to use digital currencies as an alternative to the US dollar for trade, according to a Thursday report from local news media, Free Malaysia Today
Dr. Mohamad made his thoughts known during a round-table discussion at the KL Summit 2019, which also featured Turkey’s President, Recep Tayyib Erdogan, Iran’s President, Hassan Rouhani, and other Muslim dignitaries.
The PM, who has always wanted an alternative to the US dollar in trading, said: “We are hearing this for the first time — that Iran and Turkey are of the opinion that we should use an alternative to the US dollar.”
In May, he mooted the idea for East Asia to use a common trading currency pegged to gold, to settle imports and exports, given that gold is much more stable. It won’t be used in domestic transactions.
While speaking on the reasons to support the development, Prime Minister Mahathir explained that the existing currency for trading [US dollar] was manipulative. The local currencies were affected by external factors, under the current foreign exchange system.
However, according to him, the idea was halted due to the reaction from the superpowers to prevent them from introducing another currency, given that, “using a country’s currency gives power to that country.”
“It looks like sometimes when we use the US dollar, there are sanctions that can curb economic development,” Dr. Mohamad said, citing the sanctions imposed on Iran by the United States, which led them into negotiating new limits on its nuclear and ballistic-missile programs.
With the development today, the prime minister believes that they can be able to use their currencies for trade or have a common currency for it.
Recently, Coinfomania reported that Malaysia is still lagging in blockchain development due to the lack of cryptography skills to drive the technology forward across different industries in the country.