The beginning of the end...of government paper?

It's inevitable.

If not now or with this system, later, with another.

"E-dinar is the name of an Internet based
electronic payment (www.e-dinar.com) and exchange
system that facilitates gold backed transactions
backed by physical gold. Each e-dinar electronic
unit corresponds to an exact, fixed weight of
4.25 grams of pure 24k gold. So if an account
holder wants to send a specific amount to another
account, he just does it by a mouse click through
encryption. He also has the option to exchange
his e-dinars into any major currency or redeem
them and take physical possession of an
equivalent amount of gold dinars."

The gold itself is stored in Dubai at the
Transguard Storage Company. No metal may be
removed from storage except to cover out
exchanges and redemption orders from e-dinar
customers.

At e-dinar there is no minimum amount for any
transaction. If a customer wants just $5 worth of
gold, they’ll execute the exchange (without
hidden surcharges or exorbitant commission). The
conclusion is that the e-dinar is not just
another currency, it is a universal means of
exchange.

According to the e-dinar website they have amicably
separated from e-gold.

Interesting article.