Malaysia’s deputy finance minister has clarified that the government will not adopt cryptocurrency as legal tender. “Cryptocurrencies like bitcoin are not suitable for use as a payment instrument due to various limitations,” he said.
According to the Deputy Finance Minister, Bitcoin will not be legal tender in Malaysia.
Bloomberg reported that Malaysian officials have suggested that cryptocurrency could be adopted as legal tender. The government responded in parliament on Thursday, stating that the government does not intend to make cryptocurrency legal tender.
Mohd Shahar Abdullah, Deputy Finance Minister, stated in Parliament:
Due to several limitations, cryptocurrencies such as bitcoin cannot be used for payment.
Price swings and cyber threat exposure were two examples of limitations to cryptocurrency.
He repeated a similar statement earlier in the month regarding cryptocurrency. “Digital assets, such as bitcoin and ethereum, are not suitable to be used as a payment instrument,” the deputy minister stressed, adding that “In general, digital assets are not a store of value and a good medium of exchange.”
Further, the deputy finance minister told Parliament Thursday:
The growing technology and payment landscape have prompted Bank Negara Malaysia to actively assess the potential of … the central bank’s digital currency.
Datuk Zahidi Zinul Abidin, deputy communications and multimedia minister, had reportedly suggested the adoption of cryptocurrency in Malaysia earlier this week. However, conflicting information exists about his actual statements. Bernama Malaysia’s national news agency claims that the minister only proposed to legalize non-fungible tokens to increase participation in crypto.
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