Malaysia’s Dep. Finance Minister Denies Crypto As Legal Tender

Published by
Malaysia’s Dep. Finance Minister Denies Crypto As Legal Tender

Malaysia’s Deputy Finance Minister I, Mohd Shahar Abdullah, in a parliament session on Thursday has stated that Malaysia will not be recognizing cryptocurrencies. However, the central bank of Malaysia, Bank Negara Malaysia, will continue to work actively for a central bank digital currency (CBDC), considering the growing technology and payment landscape.

Advertisement

Malaysia Denies Adoption of Crypto as Legal Tender

Malaysian Deputy Finance Minister I has strongly rejected the proposed idea of considering cryptocurrencies including Bitcoin as legal tender, as reported by Bloomberg on March 24.

Deputy Communications and Multimedia Minister Zahidi Zainul Abidin had recently proposed the adoption of crypto as legal tender to the Malaysian government. The objective of the Deputy Communications Minister was to promote youth’s involvement in cryptocurrencies and NFTs in a well-established and regulated route.

However, Deputy Finance Minister I, Mohd Shahar Abdullah, has expressed a negative stance on cryptocurrencies such as Bitcoin. He said:

“Cryptocurrencies such as bitcoin are not suitable for use as payment instruments due to various obstacles including price fluctuations, exposure to cyber threats, lack of scalability, and negative impact on the environment.”

However, he has conveyed the interest of the Finance Ministry in the potential of central bank digital currency (CBDC).

Advertisement

Malaysia’s Central Bank Studies the Potential of CBDC

As major central banks across the globe explore the benefits of central bank digital currency (CBDC), so does the central bank of Malaysia, Bank Negara Malaysia (BNM). The Malaysian central bank is actively exploring the potential use of CBDC in cross-border payments and boosting financial inclusion.

“The CBDC is different from cryptocurrency in that it is a digital currency issued by central banks to achieve public policy objective such as increasing efficiencies of cross-border payments and progressing financial inclusion,” said Mohd Shahar Abdullah.

Recently, Malaysia coordinated with the central banks of Australia, Singapore, and South Africa in the Dunbar Project by the Bank of International Settlements (BIS) to test international settlements through a shared platform.

Advertisement

Share
Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Cyber Hornet Seeks SEC Nod for S&P 500 and XRP ETF

Cyber Hornet has filed with the U.S. Securities and Exchange Commission (SEC) to launch a…

September 27, 2025
  • 24/7 Cryptocurrency News

Cathie Wood’s Ark Invest Eyes Stake in Tether as USDT Issuer Targets $500B Valuation

Tether Holdings is preparing for one of its biggest funding rounds, with two global investors…

September 26, 2025
  • 24/7 Cryptocurrency News

Kraken Secures $500M at $15B Valuation, Eyes IPO in 2026

Kraken raised $500 million, increasing its valuation to $15 billion, setting the stage for a…

September 26, 2025
  • 24/7 Cryptocurrency News

Bybit Lists Ripple’s RLUSD Following BlackRock and VanEck Integration

Crypto exchange Bybit has announced its listing of Ripple's RLUSD amid the stablecoin's growing adoption.…

September 26, 2025
  • 24/7 Cryptocurrency News

SWIFT Plans Stablecoin and On-Chain Messaging Pilot on Linea, Challenging Ripple

The world's largest interbank messaging network SWIFT has selected Ethereum layer 2 platform Linea to…

September 26, 2025
  • Bitcoin News

Breaking: U.S. PCE Inflation Rises To 2.7% YoY, Bitcoin Bounces

The August U.S. PCE inflation data has dropped in line with expectations, although it suggests…

September 26, 2025