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Post: Malaysia Will Not Recognize Bitcoin as Legal Tender According to the Ministry of Finance

Malaysia refuses to recognize cryptocurrencies as legal tender including Bitcoin. Mohd Shahar Abdullah, Deputy Finance Minister in Malaysia said, “Cryptocurrencies like Bitcoin are not suitable for use as a payment instrument due to various limitations.”

The limitations the Malaysian Deputy Finance Minister referred to are security concerns and volatility. His remarks contradicted, Zahidi Zainul Abidin, the Deputy Minister of Malaysia’s Communications and Multimedia Ministry’s remarks from several days ago.

Zahidi Zainul Abidin urged the government to adopt  Bitcoin  earlier this week.

Malaysia CBDC

Although Malaysia will not follow El Salvador at this stage, the country is participating in Project Dunbar. The project is testing central banks digital currencies (CDBC).

cbdc dunbar

source: BIS

The participating central banks are the Reserve Bank of Australia (RBA), Bank Negara Malaysia (BNM), the Monetary Authority of Singapore (MAS) and the South African Reserve Bank (the Bank).

The aim of the project is to improve cross-border payments. Via digital currencies, cross-border transactions may be cheaper, faster and secure.

The benefits of such as a system will reduce the need for an intermediary. Central banks can communicate directly with each other via CBDCs without the necessity to hold foreign currencies.

cbdc dunbar

source: BSI

Project Dunbar commenced in September, it may take some time until it is implemented,

Crypto Mining Woes

Malaysia is suffering from illegal bitcoin mining. The crypto miners steal electricity for their equipment, which increase the electricity usage in 2021 by 400%.

The estimated loss of electricity theft in Malaysia is estimated to have reached $550 million. The number of illegal bitcoin miners peaked to 7,209 in 2021 from 610 in 2018.

Tenaga Nasional Berhad (TNB) proposed the government to impose tariffs on bitcoin miners. At the time of this writing  crypto mining  is legal in Malaysia.

As bitcoin mining is consumes a significant amount of energy and, more countries may consider imposing special tariffs on mining cryptocurrencies.

Malaysia refuses to recognize cryptocurrencies as legal tender including Bitcoin. Mohd Shahar Abdullah, Deputy Finance Minister in Malaysia said, “Cryptocurrencies like Bitcoin are not suitable for use as a payment instrument due to various limitations.”

The limitations the Malaysian Deputy Finance Minister referred to are security concerns and volatility. His remarks contradicted, Zahidi Zainul Abidin, the Deputy Minister of Malaysia’s Communications and Multimedia Ministry’s remarks from several days ago.

Zahidi Zainul Abidin urged the government to adopt  Bitcoin  earlier this week.

Malaysia CBDC

Although Malaysia will not follow El Salvador at this stage, the country is participating in Project Dunbar. The project is testing central banks digital currencies (CDBC).

cbdc dunbar

source: BIS

The participating central banks are the Reserve Bank of Australia (RBA), Bank Negara Malaysia (BNM), the Monetary Authority of Singapore (MAS) and the South African Reserve Bank (the Bank).

The aim of the project is to improve cross-border payments. Via digital currencies, cross-border transactions may be cheaper, faster and secure.

The benefits of such as a system will reduce the need for an intermediary. Central banks can communicate directly with each other via CBDCs without the necessity to hold foreign currencies.

cbdc dunbar

source: BSI

Project Dunbar commenced in September, it may take some time until it is implemented,

Crypto Mining Woes

Malaysia is suffering from illegal bitcoin mining. The crypto miners steal electricity for their equipment, which increase the electricity usage in 2021 by 400%.

The estimated loss of electricity theft in Malaysia is estimated to have reached $550 million. The number of illegal bitcoin miners peaked to 7,209 in 2021 from 610 in 2018.

Tenaga Nasional Berhad (TNB) proposed the government to impose tariffs on bitcoin miners. At the time of this writing  crypto mining  is legal in Malaysia.

As bitcoin mining is consumes a significant amount of energy and, more countries may consider imposing special tariffs on mining cryptocurrencies.

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