Ministry of Communications and Multimedia Malaysia recommends adoption of cryptocurrencies as legal tender

On March 21, foreign media reported that the Ministry of Communications and Multimedia Malaysia suggested that digital currencies such as cryptocurrencies should be used as legal tender to help the younger generation who are actively using cryptocurrencies on NFT trading platforms.

Malaysia’s Deputy Minister of Communications and Multimedia said the ministry will look into ways to increase the participation of young people in digital currencies as this is the future of finance. All of these are within the purview of Bank Negara Malaysia and the Securities Commission. We want the government to allow and legalize it so we can increase the acceptance of cryptocurrencies among young people.

Data shows that Malaysia is at the forefront of crypto adoption. Last October, the Finder Cryptocurrency Adoption Index, which surveyed more than 41,000 people in 22 countries, showed that Nigeria has the highest cryptocurrency adoption rate in the world at 24.2%, followed by Malaysia and Australia. In these top 3 countries, investors mainly put their funds into Bitcoin, Ethereum and Cardano, with Dogecoin and others also being favored.

Although the Malaysian Ministry of Communications has recommended the adoption of cryptocurrencies as legal tender, this does not appear to be the case for the Ministry of Finance.

Earlier in March this year, Malaysian Deputy Finance Minister Yamani Hafez Musa said: “Digital assets such as Bitcoin and Ethereum are not suitable for use as a means of payment. Generally speaking, digital assets are not stores of value and good mediums of exchange, which are Because the state of digital assets is subject to volatility due to speculative investment, cryptocurrencies do not exhibit the characteristics of money.”

Meanwhile, Yamani Hafez Musa raised concerns about the environmental impact of cryptocurrency mining. It is worth mentioning that Malaysia has been cracking down on illegal cryptocurrency mining activities. In December, Malaysian police shut down a crypto mining operation and seized 1,720 bitcoin mining machines in an electricity theft operation. In July last year, authorities destroyed more than 1,000 bitcoin mining rigs with road rollers.

While digital assets are not recognized as legal tender in Malaysia, Yamani Hafez Musa said they are an asset class that can be invested. He noted that the country’s Securities Commission has defined cryptoassets as securities, and its laws and regulators are currently overseeing crypto trading activities in the country.

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