The government is considering drafting a policy on digital finance, potentially recognising the use of cryptocurrencies and the role of blockchain technology.

Prime Minister Datuk Seri Anwar Ibrahim revealed that he had engaged in discussions with the government of the United Arab Emirates (UAE) and Binance, a global leader in cryptocurrency and blockchain, to explore this initiative.

Highlighting the rapid evolution of digital finance, Anwar stressed the importance of Malaysia moving swiftly to adapt, ensuring the nation does not remain “trapped in the old financial system.” He explained that Malaysia faces demands requiring significant change, describing digital innovation, akin to artificial intelligence, as a transformative force in the financial world.

“We should not sit idly and wait, only to be forced to act after others have already done so. Their (UAE) leaders feel that they can establish close cooperation with Malaysia on this issue. We need to discuss this in more detail and cast aside old business models. We have had extensive discussions about fintech. But when something new appears, we get anxious. So, I hope we can be more open to this,” he said. 

Anwar also reiterated his earlier proposal for agencies such as the Treasury and Bank Negara Malaysia (BNM) to assess how the country could embrace digital finance to remain at the forefront of technological advancement. He also emphasised the necessity of regulating cryptocurrencies and blockchain to safeguard public interests and prevent data breaches.

The Prime Minister said that Malaysia would not be starting from scratch, as it would collaborate with other parties and leverage the expertise of organisations like Binance and the UAE. Responding to queries about the timeline for implementing the policy, Anwar stated that a comprehensive study by the Ministry of Finance, BNM, and the Securities Commission would be required. A working paper on the matter would be prepared and presented to the Cabinet for approval at the earliest opportunity.

He acknowledged that the introduction of such a policy would inevitably raise concerns, particularly regarding the need to train personnel, build capacity, and attract stakeholders. However, he expressed confidence in Malaysia’s strong relationship with the UAE, highlighting the commitment to progress on the condition of collaborative partnership to ensure smooth implementation.

(Source: Free Malaysia Today, Berita Harian)

• TAGS:
• Bank Negara Malaysia
• Blockchain Technology
• BNM
• Cryptocurrency
• Digital Finance
• Prime Minister Datuk Seri Anwar Ibrahim
• UAE