KUALA LUMPUR: Iran is proposing the setting up of a “united cryptocurrency” for Muslim countries with the cooperation of central banks to be more resistant to economic and financial shocks and manipulation.
Iranian President Hassan Rouhani said cryptocurrency was an avenue to strengthen cooperation among Muslim countries.
“In the past, Prime Minister Tun Dr Mahathir Mohamad was seeking to introduce the (gold) dinar and today, with new technologies, we would be able to set up a new currency for the Muslim world to benefit and take profit from the advantages of cryptocurrency, and to support innovation, research and development in the technology sector,” he said at the Kuala Lumpur Summit 2019 round-table session on “The Priority of Development and The Challenges” here yesterday.
Dr Mahathir said Malaysia had suggested the use of an Islamic currency to reduce dependency on the United States dollar.
“I voiced this idea a long time ago and at that time, there were a few attempts by us.
“But the superpowers decided to take action against us. They told us not to use a different currency,” he said after the first round-table session here.
Dr Mahathir said Malaysia must think thoroughly of the idea of having a united cryptocurrency, citing that Iran and Turkey had agreed to use the common currency.
“If we use the US dollar, there are certain restrictions imposed that may affect our economic growth. For the first time, Iran and Turkey think that if we do not use the US dollar, we can use our common currency, which will be created if all of us agree.”
Rouhani said Muslim countries could consider establishing a joint-investment venture to support start-ups while developing tourism, information and communication network in all Muslim states.
“We can agree on the short- and medium-term plans of action and design a mechanism to monitor the issue, and present realistic and practical solutions.”
The Iranian leader said it was the best time to set up the Islamic Development Fund to promote prosperity for Muslims and improve their participation in society.
Dr Mahathir said the purpose of the round-table discussion was to find ways to boost the economy of Muslim nations.
“We discuss ways to boost our economies as we feel that the economic strength is important. Thus, we can be dependent on Muslims countries.”
He said Malaysia could leverage the advancement of technologies in Iran and Turkey as they had been pioneering the sector among Muslim countries.
“Turkey has dominated modern technology. Including Iran, they have the capability in science and engineering. Hence, we can exchange ideas and knowledge with them.”