http://mashable.com/2014/11/13/isis-currency-design/#
Isis is in the news again not for their
traditional threat related reputation but for minting their own currency.
Although the full blown production hasn't actually begun, the Islamic group
published several mock-up designs. The designs are engraved on gold, silver, and
bronze coins. The gold coin has two different designs, the silver three, and
the bronze one. The group published the future currencies on social media
attracting many supporters. As the hype increased, so did the raised conflict
of whether this currency will clash with existing currencies enforced on
Muslims. Isis responded by stating their soon to be currency will “enslave and
impoverish” them. Although the coins have different designs, the Diwan al-Mal
treasury department of ISIS says the coins will inherit the market pricing of
gold and silver. Laith Alkhouri, director of MENA Research and Analysis stated,
“The proposed currency was entirely unrealistic…Without international
recognition of the currency, it will have virtually no trading power.” Although
this seems like a reasonable statement, many believe this to be untrue. The
reason being that the currency in itself is gold and silver therefore despite
what is engraved on the coin, shouldn't it still be worth market value?
Alkhouri responded to related questions by stating that very few countries will
recognize the currency as legitimate. Trading these coins will promote
terrorism, moreover money laundering. Another question in the air relates to
how ISIS is funding this entire process. The United States Treasury Department
officials investigated into the Islamic group financially. They found that ISIS
brings in approximately $1 million oil revenue daily, $20 million annually from
kidnapping ransoms, and an unknown but projected large amount from both
criminal acts and supporting donations. ISIS has no problem funding their
entire organization even when the U.S. is trying to contest them financially.
The Treasury Department’s David Cohen states, “Our efforts to combat its
financing will take time… We have no silver bullet, no secret weapon to empty
ISIS’s coffers overnight.” This seems to be the case as ISIS is financing their
organization more than comfortably as they continue to commit criminal acts. Do you think the Islamic State's new currency will be useless
due to the lack of global recognition or will it useful, ultimately impoverishing
other currencies already in use?
I think it will be difficult convincing citizens to accept the monetary system and to keep it going. One possibility is that the people will chip away at the coins, extracting the worth of the metals. Rather than using them in transactions, they are likely to hoard the coins. For this reason, I do not think the currency will be successful.
ReplyDeleteIt will be hard to believe that ISIS will adopt a currency that is not backed by its own government. Gold and silver are commodities and have their own trading values that fluctuate on a regular basis so it does not seem logical to apply them to a new currency. Also, trade with other countries will may be increasingly difficult for ISIS if other countries do not recognize the currency. The fact that ISIS receives the majority of its funding through criminal activities proves that they will not be able to pay for this expenditure for an extended period of time. Eventually, their criminal activities will catch up to them.
ReplyDeleteI don't see ISIS currency being used other than in the local markets they may control. The world will not support a terrorist currency so it is virtually useless because it can not be traded on a large scale global market.
ReplyDeleteLike the comments above, I have a hard time believing that the Islamic State's new currency would be useful without international recognition. It's unrealistic to believe anyone would support a new form of currency made by a terrorist organization. Although it would be made of gold and silver, if people don't accept the currency, I don't see it being very successful.
ReplyDeleteIn the same light that America does not recognize terrorism and will do anything to stop it, so will its allies. Just like Haley pointed out, even though the currency might be attractive, I don't see this movement being successful. With the world being a global village, everything and everyone you associate yourself with matters in the end.
ReplyDeleteI agree with many of the comments made above. While there may be value in the metal of the coins, the coins will simply not be recognized on an international scale because they are backed by a terrorist organization. I do not see any potential for ISIS currency.
ReplyDelete