Recently there were several rumors and speculations raised after the statement of the Malaysian Minister, which now refused by another
The Deputy Financial Minister of Malaysia refuted recent speculations regarding the legalization of bitcoin and other cryptocurrencies in the country. Bloomberg reported that on Thursday, the government in parliament clarified that they have no intention of legalizing cryptocurrencies in the region.
Earlier this week, the Deputy Minister of the Malaysian Communication Ministry proposed that the country should adopt the cryptocurrency and make them legal tender just like El Salvador did by making bitcoin legal. Malaysia could be the second country to do so if that would follow, but the Deputy Finance Minister denied it.
As per the report, Mohd Shahar Abdullah, the deputy finance minister, said in parliament that bitcoin-like cryptocurrencies are not suitable for payment instruments as there are various limitations. Putting some examples of those various limitations, the Minister included the price swings of cryptocurrencies and their exposure to cyber threats like hacking.
The statement made in Parliament by Abdulla somewhat reiterates what he said about cryptocurrencies earlier this month. At that time, he said that bitcoin and ethereum like digital assets are not suitable in terms of being used as a payment medium. The deputy minister added that digital assets are not a suitable medium of exchange and not a store of value in general.
In parliament on Thursday, while declining the proposal of cryptocurrencies legalizing, the deputy minister said that the payment space and growing technology had prompted the Bank Negara Malaysia. Hence, the financial institution is actively assessing the potential of CBDCs, which are the central bank’s digital currency.
How the statement could be taken depends upon which side you are standing on regarding cryptocurrencies support or skepticism. The Malaysian government’s concerned regarding the risk that digital assets pose in the economic and financial conditions of the country along with the least secure investment and transaction medium while being used by the individuals.
However, the silver lining here could be the steps and measures being taken by Malaysian banks in order to assess the central bank’s digital currencies. The adoption of CBDCs would result in the adoption of digital currencies by the country so that it won’t be left out in the race of countries running towards becoming digital economies and take advantage of cutting edge blockchain technology.
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Source: https://www.thecoinrepublic.com/2022/03/26/so-that-means-malaysia-is-not-going-to-look-upon-digital-assets-adoption/