Cryptocurrencies Could Be Accepted as Legal Tender in Malaysia

According to a senior Malaysian government official, crypto should be allowed to be used as a medium of trade.

The central bank has yet to respond to these claims, despite the fact that it is considering launching a central bank digital currency (CBDC).

Deputy Minister of the Ministry of Communications and Multimedia, Zahidi Zainul Abidin, spoke out in Congress on Monday, saying that Malaysia should make Bitcoin (BTC) and other cryptocurrencies legal tender.

Although the use of Bitcoin as a store of value and payment mechanism has increased around the world, the adoption of cryptocurrency as legal cash has not. Only El Salvador has agreed to do so so far, attracting harsh criticism from the International Monetary Fund (IMF) due to the risks involved.

The initiative of Salvadoran President Nayib Bukele’s is still in doubt. According to a poll of businesses conducted by the ‘Chamber of Commerce’ of El Salvador, only 14 percent of enterprises have allowed Bitcoin transactions since it was designated legal tender in September.

According to a recently released report, Salvadoran businesses are not interested in using cryptocurrencies.

Minister Zahidi did not explain the scope of his ministry’s participation with digital assets throughout his address. The ‘Malaysian Ministry of Communications and Multimedia’ is in charge of the digital press and broadcasting industries in Malaysia.

It also manages and monitors telecommunications firms, as well as the country’s 5G mobile network operations and the management of domestic and international investments in the technology sector.

The Malaysian Central Bank is looking into launching a virtual ringgit.
Although the financial system is regulated by the ‘Ministry of Finance,’ which includes the central bank and securities regulator, “digital financial operations” are also within the purview of the ‘Ministry of Housing and Local Government,’ according to the official.

The Malaysian issuer has yet to take a formal position on the adoption of Bitcoin as legal money. The organisation told Bloomberg News in January that it was considering issuing a central bank digital currency (CBDC), also known as a virtual Malaysian Ringgit.

The Deputy Minister of Communications and Multimedia’s remarks have elicited no response from Bank Negara Malaysia.

Why Should You Be Concerned

The IMF has been supporting blockchain use, but only through fiduciary digital currency projects that will compete with Bitcoin and other cryptocurrencies.
Other countries, including Malaysia, have looked into the possibility of adopting BTC as legal money, but none have yet taken the plunge.

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One Comment

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