Malaysia does not have any intention to recognize cryptocurrency as a legal tender in the near future.
The main reasons cited for the decision include the high volatility in the crypto sector and susceptibility to hacks.
As reported a few day ago here, Deputy Communications and Multimedia minister Zahidi Zainul Abidin had made a proposal to the government asking for adoption of cryptocurrencies such as bitcoin as legal tender to encourage the participation of the young investors in the crypto space.
However, Deputy Finance Minister I, Mohd. Shahar Abdullah made a public statement and pacified the hubbub on same. As reported by Bloomberg, He told Malaysia’s parliament that there were too many limitations on digital currencies such as bitcoin to use them as a payment instrument. He said these limitations include swing and price and the danger of cyber threats.
The deputy finance minister also added that looking at the current scenario of cryptocurrency, the government is already in the process of assessing the potential of the bank’s digital currency via Bank Negara Malaysia.
Last year in September, the bank had already run a test trial of CBDC with its counterparts from Australia, Singapore and South Africa.
At the same time, Malaysia’s neighbor Thailand imposed a ban on the use of cryptocurrencies for payments, thereby making the list of countries opposing cryptocurrency s bit longer.
More nations like India, Indonesia and Turkey, are trying to curtail the use of digital assets if not banning completely. The main reason for the governments across the world to grab control of crypto currencies is that these types of digital tokens are being used in illegal activities like drug trade, money laundering, terror funding and Ponzi scams.
