According to Bloomberg, Bank Negara Malaysia said that Malaysia has begun to assess the potential benefits of a central bank-backed digital currency. The central bank noted that it is “actively evaluating the value proposition of Malaysia’s central bank digital currency.” While no decision has been made to issue such a digital currency, research has focused on proof-of-concept approaches and the enhancement of technical and policy capabilities “if a digital currency is to be issued in the future,” the central bank said. Malaysia joined forces with international banks last September…
Bank Negara Malaysia has said that Malaysia has begun assessing the potential benefits of a central bank-backed digital currency. Bloomberg News Report.
The central bank noted that it is “actively evaluating the value proposition of Malaysia’s central bank digital currency.”
While no decision has been made to issue such a digital currency, research has focused on proof-of-concept approaches and the enhancement of technical and policy capabilities “if a digital currency is to be issued in the future,” the central bank said.
Last September, Malaysia teamed up with the Bank for International Settlements, Australia, Singapore and South Africa to test the use of central bank digital currencies for international settlements through a shared platform in a project called Project Dunbar.
More countries launch digital central bank currency pilot projects
Several countries, notably China, have been testing the use of central bank-issued digital currencies to make everything from bank-to-bank transfers to consumer purchases cheaper and more efficient. As a first step, China will offer athletes and spectators access to its digital yuan ahead of the Beijing Winter Olympics starting next month.
Cambodia has succeeded roll out In October last year, its own central bank-backed digital currency, Bakong, and introduced A new mobile cross-border remittance service in partnership with Malaysian banking group Maybank is using the token for the first time in Southeast Asia, a move that may also have inspired Bank Negara Malaysia.
At present, in addition to Cambodia, 9 countries around the world – the Bahamas, 7 eastern Caribbean islands and Nigeria – have launched digital currencies backed by central banks, of which 14 countries are in the pilot stage, including China, Thailand , Singapore, South Korea, the United Arab Emirates, Saudi Arabia, Sweden, Turkey and South Africa, according to the Atlantic Council, a US think tank.
