Malaysian minister says crypto is not suitable for payment purpose
The deputy minister of Malaysia commented on crypto assets and noted that such things can’t be part of the payment options.
Malaysia is a tech-friendly country but just like other countries, it doesn’t want huge circulation of the crypto industry, in particular the financial system. At present, Malaysians are allowed to do trading of crypto assets but can’t use them in the payment system as legal tender.
On 3 March, Yamani Hafez Musa, Deputy Minister of Malaysia, responded to a question asked in the lower Parliament house.
Minister stated:
“Digital assets such as Bitcoin and Ethereum are not suitable to be used as a payment instrument as these assets do not exhibit characteristics of money. In general, digital assets are not a store of value and a good medium of exchange.”
Minister noted that huge volatility in the price of crypto assets is a big reason to not use it in the payment system.
“This is due to the state of digital assets which is exposed to volatility as a result of speculative investments.”
The whole discussion on this matter also touched on a plan to create digital currency in collaboration with the Central Bank of the country. Alternatively, we can say that the government of Malaysia is showing its efforts to move toward the adoption of CBDCs based payment system.
No doubt that there are many types of issues with crypto assets, which are responsible for not to use in payment systems like speed & Pollution, from the point view of Deputy Minister but besides these things he also said that the traditional payment system of Malaysia better and safe over Digital Currency based payment system, so Central Bank is not gonna launch CBDC.
If we look at the ground level report then we will find that Malaysia is a better place for crypto traders because rules on the crypto industry are just like securities-based rules.
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