The Malaysian Central Bank is actively considering various options for investing in the cryptocurrency market. According to Bloomberg, the bank has yet to make a decision on issuing digital currency issues in Malaysia in the future. Quite a few countries around the world are looking at the use of CDBC to make payments and transfers.
In September 2021, Malaysia, along with South Africa, Australia, and Singapore, set up a task force with the Bank for International Settlements to work on this issue. Project Dunbar, the project set up by this task force, will test the use of central bank digital currencies (CDBC) to make international settlements.
The aim of such projects is to develop different platforms which can be shared for transactions across borders. Many types of central bank digital currencies offered by different central banks will help financial institutions carry out transactions without intermediaries. This will result in a reduction of transaction costs and time as well.
China has also been working on how to use CBDC to make transfers for consumer purchases easier and more efficient. China is offering digital yuan use during the Winter Olympics in Beijing.
As far as the Malaysian Central Bank is concerned, its financial system is working well to meet the needs of its economy and its citizens. Advancements in technology and rapid digitalization have resulted in the creation and adoption of digital payments. Every central bank has the responsibility of checking out digital assets and their use in payments and the bank is doing due diligence checks before adopting such methods.
