Sunday, November 27, 2022

Malaysia not recognising cryptocurrency as legal tender, MOF rejects minister’s proposal

NewsMalaysia not recognising cryptocurrency as legal tender, MOF rejects minister’s proposal

Last week, the Deputy Minister of Communications and Multimedia (MCMC), Datuk Zahidi Zainul Abidin has called for the legalisation of cryptocurrency in the country for the future of finance.

This would include legalising the use of electricity for mining, as well as using cryptocurrencies as legal tender. However, it appears that the government will not be adopting this anytime soon.

According to Bloomberg, the proposal was rejected by the Ministry of Finance (MOF). Speaking at the Dewan Rakyat on Friday (25 March), Finance Deputy Minister I, Dato’ Indera Mohd Shahar Abdullah said the government currently has no intention of recognising cryptocurrencies as legal tender.

He said that cryptocurrencies like Bitcoin are not suitable for use as a payment instrument due to various limitations. In addition, the cryptocurrency’s volatile nature and the cyber threats it inherently has made it not suitable as a legal tender.

That being said, Indera stressed that Bank Negara Malaysia is assessing the potential of a central bank’s digital currency (CBDC).

This assessment has been ongoing since September last year, and it was conducted in collaboration with the Bank for International Settlements, Australia, Singapore and South Africa.

While the digital tokens are not legal tender, there are currently four digital currency exchanges allowed to operate in the country.

What do you think about MOF’s stance on cryptocurrencies? Share your thoughts with us in the comment section below.

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