An official from Malaysia’s Ministry of Finance has reportedly opposed the idea of adopting cryptocurrencies like Bitcoin (BTC) as a method of payment following recent crypto-friendly proposals by the Deputy Minister of Communications.
Malaysia has no plans to recognize BTC as legal tender, Deputy Finance Minister Mohd Shahar Abdullah says noted at a parliamentary meeting on Thursday, according to a Bloomberg report.
“Cryptocurrencies like Bitcoin are not suitable as a payment instrument due to various limitations,” Mohd Shahar said, citing risks such as volatility and potential cyber threats.
Instead of adopting cryptocurrency for payments, Malaysia will continue to focus on the potential development of central bank digital currency (CBDC), the official added, saying:
“The growing technology and payments landscape has prompted Bank Negara Malaysia to actively assess the potential of CBDC.”
Malaysia’s Ministry of Finance did not immediately respond to Cointelegraph’s request for comment. This article will be updated pending new information.
Mohd Shahar’s remarks came shortly after Malaysia’s Deputy Minister of Communications and Multimedia, Datuk Zahidi Zainul Abidin, on Monday called on local regulators and lawmakers to legalize certain use cases of cryptocurrencies and cryptocurrencies. non-fungible tokens (NFT). The official pointed out that such measures would greatly support young people, as crypto and NFTs have become extremely popular among the younger generation.
Also some sources suggested that Zahidi has proposed not only to legalize some cryptocurrency transactions in Malaysia, but rather to adopt cryptocurrency as legal tender.
Related: Thai SEC Bans Crypto Payments, Seeks Disclosure of System Failure from Exchanges
Despite being unwilling to embrace cryptocurrency as a means of payment, Malaysian regulators have apparently not restricted cryptocurrency trading so far, following the steps of many other countries like Indonesia. . In recent years, local authorities such as the Securities Commission of Malaysia have issued approvals to cryptocurrency exchanges, while some of the largest cryptocurrency trading companies in the world have also expanded into the country.