Deputy Finance Minister I Mohd Shahar Abdullah has said that Malaysia is not planning to recognise cryptocurrencies, such as Bitcoin, as legal tender.

According to Mohd Shahar, cryptocurrencies are not suitable to be used as payment instruments due to several limitations. “This includes price swings and exposure to cyber threats,” he said.

Mohd Shahar’s comments came following a proposal by the Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin to adopt digital currencies as legal tender. Datuk Zahidi stated that the adoption of such currencies will assist the younger generation who actively use digital currencies, especially on non-fungible token (NFT) trading platforms. 

Malaysia has, however, been actively evaluating the opportunities and risks of central bank digital currencies. Project Dunbar, for instance, saw Bank Negara Malaysia collaborating with three other central banks and the Bank for International Settlements (BIS) Innovation Hub in assessing the use of central bank digital currencies for international settlements via a shared platform. 

(Source: Free Malaysia Today)

• TAGS:
• Bank Negara Malaysia
• Bitcoin
• Cryptocurrency
• Legal Tender
• Mohd Shahar Abdullah