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Malaysian deputy finance minister responds to proposal to legalize Bitcoin

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Following recent crypto-friendly comments by the deputy communications minister, an official from Malaysian Ministry of Finance said to be averse to the concept of embracing cryptocurrencies like Bitcoin (BTC) as a payment mechanism.

According to Bloomberg, Malaysia’s deputy finance minister Mohd Shahar Abdullah stated in a parliamentary hearing on Thursday that the country has no intentions to adopt Bitcoin as legal cash.

“Cryptocurrencies such as Bitcoin are not fit for use as a payment instrument. Due to a variety of constraints,” Mohd Shahar stated, noting dangers such as volatility and potential cyber-attacks.

Malaysia will continue to focus on the possible growth of the central bank digital currency (CBDC) rather than embracing bitcoin for payments, according to the official, who added:

“Because of the changing technological and payment landscape, Bank Negara Malaysia is constantly evaluating the CBDC’s possibilities.”

On Monday, Malaysia’s deputy communications and multimedia minister, Datuk Zahidi Zainul Abidin, urged local authorities and politicians. In order to legalise some uses of cryptocurrencies and nonfungible tokens (NFTs). Crypto and NFTs have become “massively” popular among the younger generation, according to the official. And such actions would greatly benefit them.

According to some publications, Zahidi recommended adopting cryptocurrencies as legal tender rather than simply legalising some cryptocurrency transactions in Malaysia.

Malaysian regulators showed an unwillingness to accept cryptocurrency as a form of payment. However, they appear to have left cryptocurrency trading unrestricted so far. Following the lead of many other countries such as Indonesia. Local governments, such as Malaysia’s Securities Commission, have been approving cryptocurrency exchanges in recent years. And some of the world’s largest crypto trading firms have also expanded into the country.

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