Datuk Zahidi Abidin, the deputy minister of Communications and Multimedia for the Malaysian government has made a statement, endorsing the adoption of cryptocurrency by the state.
As reported by the local news outfit, the communications deputy chief’s stance on the patronage of crypto follows closely on the heels of the concept of virtual assets being perceived as an illegal means of transacting by the Ministry of Finance because it doesn’t have the features of fiat money.
Abidin urged the Malaysian state to adopt the use of cryptocurrency seeing that the virtual currency is being used by a vast majority of young people and legalizing it will only encourage and inspire them at being industrious by embracing financial technology.
While the deputy communications chief pointed out that the decisions of legalizing cryptocurrency and regulating it are within the jurisdiction of Bank Negara Malaysia (Malaysian Central Bank) and the nation’s Securities Commission. He further recommended that asides from making crypto a lawful trade, it should also be adopted as a legal tender.
No statement has yet been issued by the Central Bank of Malaysia nor the Securities Commission in response to the recommendations of Abidin. However, in a report published in January, Bank Negara Malaysia had commenced research on the possible development of a Central Bank Digital Currency (CBDC) by the nation.
The Fate of Crypto Amidst Regulatory Uncertainty
Cryptocurrency is one of the fastest-growing financial technologies of the 21st century, owing to its decentralized nature and the anonymity of trading.
While the virtual asset has seen a diverse use case across the board, authorities still fear the tendency of using the asset class for financial fraud and hence has led many to clampdown on the use of crypto. For the financial regulators that have made this move, the aim is to shield their citizens from getting scammed by impostors
While many countries like China have turned their backs on crypto, a growing number of others like Ukraine have chosen to regulate it. The nature of the clamor to legalize crypto by Abidin confirms the opinion held by many that digital currencies and their associated innovations are believed to be the future of money.