Following a proposal calling to recognize bitcoin as legal tender in Malaysia, an official at the country’s Ministry of Finance says there are no plans as such. Mohammed Shahar Abdullah, the Deputy Finance Minister, in a parliamentary meeting said that Malaysia has no plans to recognize bitcoin as legal tender. He highlighted that cryptocurrencies are not suitable for use as a payment instrument due to limitations.
Abdullah outlined the risks of volatility and potential cyber threats like hacks and phishing etc. The deputy finance minister said Malaysia will focus on the potential development of the central bank digital currency. He explained that the Bank Negara Malaysia has been prompted by the growing technology and payment landscape to actively look into CBDC.
The ministry of finance’s statement comes after Malaysia’s deputy communications and a multimedia minister called on local regulators and lawmakers to legalize cryptocurrencies and non-fungible tokens. Datuk Zahidi Zainul Abidin highlighted that doing so would support the young people. Cryptocurrencies and NFTs have grown in popularity among the younger generation.
However, Malaysia has been hesitant about cryptocurrencies and is not willing to adopt digital assets as a means of payment. But the country’s regulators have not restricted the trading of cryptocurrencies. The Securities Commission of Malaysia has been giving the go-ahead to cryptocurrency exchanges. Crypto trading companies have also opened branches in the country.