8th February 2022 - 3 min read
The chief executive officer of digital asset exchange MX Global, Datuk Fadzli Shah has urged Malaysian investors to explore new investment alternatives that will offer growth in the era of digital finance and asset moving forward, such as cryptocurrencies. This comes as the country undergoes rising prices and inflation trends, as well as diminishing traditional investment options.
According to Datuk Fadzli, fiat currency has been experiencing a weakening of power over the past two years, whereas cryptocurrency saw a huge increase in acceptance in many countries. Malaysia itself has almost a million active cryptocurrency traders, indicating that cryptocurrency trading is gradually gaining traction in the local investment landscape.
Given this development, Datuk Fadzli believes that there will be a need for cryptocurrency trading to be further regulated for its continued expansion and to instill more confidence among Malaysian investors. As such, he foresees more licences for digital assets to be rolled out in the future, along with an increase in local regulated exchanges.
“We have a financial system that has been here for years, so it is understandable that there are investors who are still sceptical over the concept of cryptocurrency, and that is why it is important for us regulated exchanges to keep investors informed on what it is, the benefits, and the safe and danger zones of this relatively new digital asset,” said Datuk Fadzli in a statement, adding that investors must invest in the right coins to fully reap the benefits of crypto trading.
Datuk Fadzli further explained that MX Global currently only offers Bitcoin and Ethereum for trading because these are considered as blue-chip assets that have withstood the test of time, with clear indication of its growth potential. There are plans, however, to introduce more coins in the future, although MX Global did not specify a timeline for them.
Aside from that, Datuk Fadzli also urged investors to trade on regulated exchanges that are compliant with regulations put in place by the Securities Commission Malaysia (SC) – and therefore provide a secured platform – instead of unregulated exchanges. He said that although unregulated exchanges may offer the advantage of having numerous coin options, regulated exchanges give investors a greater peace of mind with their safe trading environment.
Finally, Datuk Fadzli touched on the growing importance of smart contract, noting that the technology has been recognised as being both efficient and secure in its usage. Essentially, smart contracts are programmes written into codes on a blockchain that will automatically execute once pre-set conditions are met. It can be used for proceedings such as fund transfers, account registrations, or issuance of documents.
“I think what’s going to be in store in 2022 will be the utilisation of smart contracts and leveraging on smart contracts. Blockchain technology will fundamentally change how we live and work in the future, with big players such as China, which is already adopting blockchain into their economy. Blockchain-based smart contracts will be imminent in the future of supply chain and eventually the global economy,” said Datuk Fadzli.
(Source: The Sun Daily)
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