Deputy Minister: BNM Not Aiming To Issue Central Bank Digital Currency Soon
Author Avatar
(Image: Bernama)

Deputy Finance Minister II, Yamani Hafez Musa said that Bank Negara Malaysia (BNM) is not looking to issue any central bank digital currency (CBDC) in the near future.

According to the deputy minister, Malaysia’s payment systems – including the real-time retail payments platform (RPP) – are secure and efficient enough to support economic needs and enable digital payments. “The financial system in Malaysia continues to support the functioning of the economy while meeting the needs of individuals and businesses,” he said.

Yamani Hafez did stress, however, that the central bank will continue to actively assess the potential of CBDC and how it may assist the government in achieving public policy objectives in the future. He acknowledged that the rapidly changing payment and cryptocurrency landscape has prompted many central banks around the world to consider issuing CBDC.

bnm
(Image: The Sun Daily)

Aside from that, Yamani Hafez also commented on the government’s stance on the use of cryptocurrencies in day-to-day transactions, stating that companies are free to issue digital assets for fundraising, but they must abide by regulations set by the Securities Commission (SC). Specifically, they need to abide by the conditions provided under the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019.

Meanwhile, Yamani Hafez emphasised that cryptocurrencies are not recognised as legal tender currencies in Malaysia, and therefore are not a payment instrument regulated by BNM. “Cryptocurrencies are not suitable to be used as a payment instrument as the currencies do not show the universal characteristics of money,” he further stressed, explaining that cryptocurrencies’ volatility, exposure to cyber threats, and lack of scalability do not make them a good store of value and medium of exchange.

That said, Yamani Hafez also recognised that despite this, Malaysians must also keep up with the latest development in cryptocurrencies and the blockchain technology that powers it. He said that the government, through the SC, has hosted events such as the annual FinTech SCxSC Conference so that interested individuals – especially youths – were not left behind in understanding blockchain technology. The Conference has been hosted for eight years since 2014.

“This year, the SCxSC Conference was held from 26 to 28 October 2021. Of the attendees, 60% belonged to the youth group aged 35 and below,” Yamani Hafez shared.

(Source: Malay Mail)

0 0 votes
Article Rating

SHARE

Comments (0)

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
Top Cryptocurrency Articles
Top Cryptocurrency Articles
Post Image
Winds Of Change For Malaysian Investors
Pang Tun Yau
- 1st October 2021
Times have certainly changed for Malaysian retail investors. In recent times, developments within the financial technology space has […]
Post Image
6 Things I Learned After Investing In Crypto
Pang Tun Yau
- 2nd December 2021
Investing in crypto wasn’t something I had planned. I had a good job in a multinational company and […]
Post Image
Securities Commission Puts KuCoin On Its Latest Investor Alert List
Alex Cheong Pui Yin
- 5th October 2021
The Securities Commission of Malaysia (SC) has included cryptocurrency exchange KuCoin in its latest Investor Alert List (dated […]
Post Image
Binance Announces Measures In Malaysia Following SC Action
Pang Tun Yau
- 13th August 2021
Binance has finally announced that it will be taking several measures in a move to remain compliant with […]

Related articles

Related Posts Image

Why Is 22 May Celebrated As Bitcoin Pizza Day?

Jacie Tan -
2nd February 2021
Related Posts Image
Related Posts Image
Related Posts Image

How To Future-Proof Yourself Financially

Jacie Tan -
2nd February 2021