A Malaysian finance ministry official has reportedly opposed the idea of accepting cryptocurrencies such as Bitcoin (BTC) as a payment method following recent proposals by the Deputy Communications Minister on cryptocurrencies.
Malaysia has no plans to recognize BTC as legal tender, Deputy Finance Minister Mohd Shahar Abdullah said at a parliamentary meeting on Thursday, according to a Bloomberg report.
“Cryptocurrencies such as Bitcoin are not suitable for use as a payment instrument due to various restrictions,” Mohd Shahar said, citing risks such as volatility and potential cyber threats.
Instead of using cryptocurrency for payments, Malaysia will continue to focus on the potential development of a central bank digital currency (CBDC), the official added, stating:
“The growing technology and payment environment has prompted Bank Negara Malaysia to actively evaluate the potential of CBDCs.”
The Malaysian 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 come shortly after Malaysia’s Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin on Monday urged local regulators and lawmakers to legalize certain use cases for cryptocurrencies and non-fungible tokens (NFTs). The official stressed that such measures would provide significant support to the youth as cryptocurrencies and NFTs become “massively” popular among the younger generation.
Some sources also speculated that Zahidi was not just proposing to legalize certain cryptocurrency transactions in Malaysia, but to accept cryptocurrency as legal tender.
Related: Thailand Securities and Exchange Commission Bans Cryptocurrency Payments and Requires Exchanges to Disclose System Failure
Although Malaysian regulators are reluctant to use cryptocurrencies as a means of payment, they have apparently not restricted cryptocurrencies trading so far, following the example of many other countries such as Indonesia. In recent years, local governments such as the Malaysian Securities Commission have been issuing permits for the exchange of cryptocurrencies, while some of the world’s largest crypto trading companies have also expanded their activities in the country.
