The Islamic State of Iraq and Syria (ISIS) is reportedly planning to rid itself of paper money and instead wants to revive the Sharia currency of the Ottoman -- gold dinar and silver dirham coins.
If reports out of Syria and Iraq turn out to be true, the Islamic State will soon become the only 'state' to back its currency with gold, silver and copper. The militant group, which now wants to solidify its makeshift Caliphate, has said that it will adopt the Gold Standard of currency to rid itself from the "the oppressors' money system".
Middle-East affairs journalist Said Benjamin first revealed on Twitter that the ISIS has released details of its new currency, which will consist of seven coins -- 1 and 5 gold dinar, 1, 5, and 10 silver dirham and copper 10 and 20 fills.
The new Shari currency that will be used in the regions governed by the ISIS -- as a measure to fight the West -- will be introduced within the next few weeks, the Daily Mail reported. The citizens under the ISIS areas will be required to change from regular dinars and Lira to gold dinars and silver dirham.
However, ISIS is yet to explain on how it plans to mint its own currency in gold, silver and copper.
A CNN report citing an ISIS statement noted that by switching to the Shari currency, the Islamic State wants to remove Muslims from the "global economic system that is based on satanic usury."
ISIS is expected to issue another statement to explain the new currency's exchange rate, and where the 'faithful' can collect it from.
#Iraq | #ISIS says the new currency will take the group out of "the oppressors money system" pic.twitter.com/4S4GcM86Jk
— Zaid Benjamin (@zaidbenjamin) November 13, 2014
Sharia currency of the Ottoman Empire
In 634 CE, the Caliphate of Uthman, or more commonly referred to as the Ottoman Empire, first introduced the dinar coins. Made of pure gold and pure silver, the dinar and dirham were round in shape and were referred to as the Islamic dinar and Islamic dirham. The Sharia currency during the Ottoman reign was stamped with an Islamic message on one side, while the date and name of the ruler was inscribed on the other.
Why is Gold Standard a Bad Choice
While the ISIS may have grand plans for itself, a VOX report stated that owing to "ISIS' questionable prospects for long-term survival," switching to a gold standard could prove to be a bad choice.
The report noted that while it was a practical measure to stick to paper currency, ISIS' interest in gold coins is a sign of its weakness. As "nobody has faith in its long-term durability", the group thinks that they need to bolster their credibility with precious metals.
