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Malaysian Minister Pulls The Plug On Cryptocurrencies

The Deputy Finance Minister cited the reasons for banning cryptocurrencies such as price fluctuations, including the dangers of cyber theft.

Malaysian Minister Pulls The Plug On Cryptocurrencies

Putting aside all speculations, the deputy finance minister of Malaysia announced to the parliament that the country will not adopt or legalise cryptocurrencies like bitcoin. 

Mohammed Shah Abdullah specifically pointed out the drawbacks of using cryptocurrencies like cyber security issues and fluctuations in price. 

Earlier, in the month of March, the communication ministry of Malaysia tried pushing the case of bitcoin and other cryptocurrencies as another official method of payment. The communication ministry of Malaysia was in favour of legalising crypto as it would get the youth of the country actively involved in its finances. Of late, El Salvador became the very first country that legally adopted bitcoin as the national currency.

The Deputy Finance Minister cited the reasons for banning cryptocurrencies as price and swing, including the dangers of cyber theft. The central bank of Malaysia, Bank Negara Malaysia has yet to take a formal position and is sitting on the fence. Though, it said that it was studying the institutionalising of a Central Bank Digital Currency (CBDC). Back in September, the bank worked in tandem with counterparts from Singapore, Australia, and South Africa in order to test a cross-border run of CBDC. 

Earlier in the week, Thailand also banned the use of all types of cryptocurrencies in a bid to check cyber fraud and other related issues. With this, the country joined other countries like India, Turkey, and Indonesia which are either putting a limit on the use of Bitcoin and other cryptocurrencies or are in the process of considering it.

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