The Malaysian Government Wants to Adopt Bitcoin As Legal Tender

The Communication Ministry of Malaysia has presented a new proposal to the government. The proposal seeks to adopt Bitcoin as legal tender in the country. 

In a statement released today, the Malaysian Ministry of Communications and Multimedia came up with a new proposal. The proposal aims to recognize cryptocurrencies such as Bitcoin (BTC) as legal tender. This plan is to give the younger generation an opportunity for better engagement in the crypto industry. The youth plays the main role in using cryptocurrency, particularly on non-fungible token (NFT) trading platforms. The plan was revealed by Datuk Zahidi Zainul Abidin, deputy minister of the Malaysian Ministry of Communication and Multimedia, as reported by Bloomberg.

Furthermore, Zahidi emphasized their hope that the government would grant the permission. He further stated that it is their responsibility to figure out how the legalization can be done. The primary objective is to encourage and support young people to become involved with cryptocurrency. According to the deputy minister, cryptocurrency in Malaysia is regulated by the country’s central bank and Securities Commission.

The Role of Malaysian Youth in Cryptocurrency

According to Zahidi, digital currencies are the future of finance. In addition, he said that the ministry would look for ways to enhance the engagement of young people in cryptocurrencies.

He further stated that Bank Negara Malaysia and the Securities Commission are in charge of this. Moreover, Zahidi noted that their hopes are high for the government’s support in this initiative. 

Zahini was asked about the Malaysian government’s stance on NFT trading in light of the proposal. In a follow-up question from MP Syed Ibrahim Syed Noh (PH-PKR), Zahidi emphasized his answer. Additionally, he noted that it is a matter for the government to take a position. 

As per the record, the Dewan Rakyat is the lower chamber of Malaysia’s bicameral Parliament. It serves as the country’s federal legislature.

Malaysia To Overcome El Salvador

For the time being, El Salvador is the only country to recognize Bitcoin as a legal currency. However, in September 2021, President Nayib Bukele proposed to adopt Bitcoin as legal money. This new law is considered a success by the majority of crypto enthusiasts. However, there is some criticism that adoption is being forced onto them.

If Malaysia accepts Bitcoin as legal money, it will hold the crown in the crypto community. More than 32 million people call Malaysia home, making it one of the most populous countries in Asia. Additionally, MYR (Malaysia Ringgit) is the country’s currency. It was formerly known as the Malaysian Dollar. The MYR to the USD exchange rate is around 0.24. According to government projections, inflation in Malaysia in 2021 sits at 2.5%. In 2022, it is expected to fall to 2%.

According to Bloomberg, the plan was also reported by The Straits Times and The Star, both being Malaysian-based news sites.