Malaysia’s Comms Ministry wants government to adopt crypto as legal tender

TL;DR Breakdown:

• The deputy minister of Malaysia’s Comms Ministry wants crypto to be legalized in the nation.
• The minister acknowledged cryptocurrency as the “future of finance.”
• Deputy minister of finance previously argued that crypto doesn’t exhibit the characteristics of a currency. 

Malaysia’s Communications and Multimedia Ministry wants the government to recognize and adopt cryptocurrencies as legal tender, following the popularity of the assets and non-fungible tokens (NFTs) amongst investors in the country. 

Malaysia’s Comms minister supports crypto legalization

In response to a question about the government’s stand on NFT platforms, the deputy minister of the Comms Ministry, Datuk Zahidi Zainul Abidin, admitted that the younger generation is becoming active users in cryptocurrency and NFT space. Zahidi acknowledged crypto as the “future of finance,” adding that the ministry will explore ways to increase the youth’s involvement in the emerging crypto assets. 

As part of the effort, the minister proposed that the Malaysian government should adopt cryptocurrency as legal tender to support local investors. “We hope the government will allow and legalize this so that we can increase the youth’s uptake of cryptocurrencies,” Zahidi precisely noted. 

Crypto doesn’t exhibit characteristics of money – Finance Minister

The statement today by the deputy minister of Malaysia’s Comms Ministry comes weeks after the deputy minister of Finance, Yamani Hafez Musa, said that cryptocurrency can not be recognized as currency in the nation. According to Musa, cryptocurrencies are not backed by any asset, and they do not possess the properties of a currency. 

“Cryptocurrencies are not recognized as legal tender in Malaysia. This is because cryptocurrencies, or virtual currencies, do not exhibit characteristics of money. They (cryptocurrency) are also not backed by any assets. Nor do they have central issuers like banks or monetary authorities,” says the deputy finance minister. 

Meanwhile, the Malaysian government is reportedly exploring the possibilities of issuing a national digital currency. In September, the central bank teamed with the Bank of International Settlements (BIS) Innovation Hub and three other central banks to test the efficacy of wholesale central bank digital currencies (CBDC).