Malaysia should make Bitcoin and other cryptocurrencies legal tender, according to the deputy minister of Communications and Multimedia.
“We hope the government will allow this,” Zahidi Zainul Abidin said in Parliament on Monday, in response to a question from an opposition legislator.
So far, El Salvador is the only country that has made Bitcoin legal tender – with mixed results. According to a Chamber of Commerce survey published this month, only 14% of companies have transacted in Bitcoin since September, when it was recognised as legal tender in El Salvador.
Malaysia’s Communications and Multimedia Ministry is in charge of the digital and broadcasting sectors, with responsibilities ranging from the deployment of 5G mobile networks to attracting investments in the technology industry. Zahidi did not specify the ministry’s involvement in digital assets.
While financial regulation is the responsibility of the Finance Ministry and its agencies, such as the central bank and the securities regulator, the Ministry of Housing and Local Government also has authority over “digital financial activities,” according to Zahidi.
The central bank has not taken a formal stance on Bitcoin as legal tender. In January, it told Bloomberg News that it is considering introducing a central bank digital currency, or CBDC. Bank Negara Malaysia did not respond to requests for comment on Zahidi’s remarks right away.
In September, the country collaborated with the Bank for International Settlements, Australia, Singapore, and South Africa on Project Dunbar, which tested the use of CBDCs for international settlements via a shared platform.
