15th April 2022 - 3 min read
Maybank has said that it is keen to play a major role in the development of central bank digital currencies (CBDCs), in line with Bank Negara Malaysia’s (BNM) current assessment of the instrument’s potential.
According to the president and group chief executive officer of Maybank, Datuk Seri Abdul Farid Alias, BNM is exploring an area that is also of interest to many other central banks around the world. This interest is spurred especially due to the new technology that exists in transferring files, materials, and money through distributed ledger technology and the existence of cryptocurrencies.
“CBDC has become more crucial for central banks to figure out and introduce them. In the process of [doing so], it will help transform the economy to a 100% digital economy, or rather, from the payment perspective,” Datuk Seri Abdul Farid said.
Datuk Seri Abdul Farid also stressed that Maybank, too, needs to study the technology involving CBDC as it does not want to invest unnecessarily. It is crucial that the bank chooses the right time and technology to dabble in the new instrument for the benefit of the country, he said.
Meanwhile, the chairman of Maybank, Tan Sri Zamzamzairani Mohd Isa commented that it is inevitable for Maybank to look into CBDC, since the rest of the world is also doing so. He also opined that there will not be “a knee-jerk reaction” from any parties on the matter, and that all aspects of CBDC will be debated on before it is implemented.
“Something like [CBDC] – if not exactly this – I foresee will happen in the future; that is just how the world has moved in the digital era, but then I think it will be in a controlled manner. We are happy to participate in any way we can with what BNM is doing,” said Tan Sri Zamzamzairani.
Earlier this year, BNM had remarked that it may begin experimenting with CBDCs in a bid to support the country’s financial development and economic transformation. However, this process is expected to take place only over the course of the next few years as in-depth studies need to be performed.
Last month, BNM also revealed that it had participated in an international project called Project Dunbar to help develop the prototypes for a common platform that allows international settlements using multiple CBDCs. The project saw BNM working together with the central banks of Australia, Singapore, and South Africa, as well as the Bank for International Settlements (BIS) Innovation Hub.
(Source: The Edge Markets)
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