Malaysia should adopt crypto as legal tender, ministry says


Malaysia should adopt Bitcoin and different cryptocurrencies as legal tender, the deputy minister of the Communications and Multimedia Ministry mentioned.

“We hope the government can allow this,” Zahidi Zainul Abidin mentioned in Parliament on Monday, responding to a query from an opposition member of the legislature.

So far, El Salvador is the one nation to adopt Bitcoin as legal tender – and with combined success. A survey of corporations by its Chamber of Commerce revealed this month discovered that simply 14% had transacted in Bitcoin since September, when El Salvador recognised it as legal tender.

Malaysia’s Communications and Multimedia Ministry oversees the digital and broadcasting sectors, with duties starting from the rollout of 5G cellular networks to attracting investments into the expertise trade. Zahidi didn’t specify what involvement the ministry has in digital property.

While monetary regulation falls beneath the Finance Ministry and entities beneath it such as the central financial institution and the securities regulator, the Ministry of Housing and Local Government additionally has jurisdiction over “digital financial activities”, Zahidi mentioned.

The central financial institution hasn’t introduced any formal place on adopting Bitcoin as legal tender. It informed Bloomberg News in January that it’s assessing whether or not to introduce a central financial institution digital forex, or CBDC. Bank Negara Malaysia didn’t instantly reply to requests for touch upon Zahidi’s remarks.

In September, the nation joined forces with the Bank for International Settlements, Australia, Singapore and South Africa to check using CBDCs for worldwide settlements through a shared platform in a undertaking dubbed Project Dunbar. – Bloomberg

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