Malaysia Proposes Making Bitcoin a Legal Tender πŸ˜‹

    As bitcoin as cemented its mark in the growing youth population, countries and large institutions are increasing their efforts of adopting bitcoin as a legal currency.


    Six months ago, El Salvador became the first country in the world to recognise Bitcoin as a legal tender. Malaysia looks like the next country to adopt the digital asset as a legal tender. The deputy minister of Malaysia’s Communications and Multimedia Ministry, Zahidi Zainul Abidin thinks bitcoin and other cryptocurrencies should be a legal tender in the country. He said this in Parliament on Monday when responding to a question about the government’s take on NFT marketplaces. Β “We are trying to see how we can legalize this so that we can develop youth participation in crypto and assist them.” Zahidi stated that the finance ministry in Malaysia would be responsible for regulating the activities of these cryptocurrencies alongside other institutions like its Central Bank and its Securities Commission. Although he didn’t say how his ministry would be involved in crypto. The Central Bank of the country has not laid a formal stance on this issue, although it stated in January that it is looking to introduce a central bank digital currency (CBDC). The central bank digital currencies are essentially electronic versions of the existing national currency unlike cryptocurrencies that exist independent of the government. The central bank cannot manage bitcoin in the same way the national currency is being managed through its monetary policies.

    The country’s finance minister is decidedly less bullish πŸ‘€

    Earlier this month, Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that due to the volatility of cryptocurrencies, they do not serve as a good store of value and a medium of exchange. This does not sound like a resounding endorsement for making bitcoin and other cryptocurrencies a legal tender in the country. According to Chainalysis’ 2021 Global Crypto Adoption Index, Malaysia is currently ranked 23rd in the world for crypto adoption. Ukraine is the latest country to legalize crypto and El Salvador still remains the only country to make bitcoin a legal tender.

    Malaysia has run into some issues with bitcoin mining in the country. According to the country’s police, bitcoin miners stole an estimated $2 million worth of electricity in just 2020. Stealing electricity for bitcoin mining is already a prevalent issue in Malaysia, where the practice is illegal. But despite these challenges, more countries are looking to get in on digital currencies. The US for example recently outlined a plan for digital assets that includes a study on the impact of crypto.


    Image source Kanchanara 🎯

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    Zun Tsu
    Zun Tsu
    NFT enthusiast. Writer. Journalist. Sharer of reliable and sourced news.
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