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The deputy minister of Malaysia’s Ministry of Communications and Multimedia, Datuk Zahidi Zainul Abidin, said in the Parliament on Monday that the country should consider regulating cryptocurrencies as legal tender.
Abidin suggested that the country should adopt cryptocurrencies as legal tender to help younger generations – who he described as the “most active users of the technology.”
Following the reports of Abidin’s proposal, Malaysia could be set to be the next country to make crypto legal tender, following in the footsteps of the Central American Republic of El Salvador.
“We hope the government can try to legalize this matter so that we can expand the participation of young people in cryptocurrencies and help them in terms of energy consumption and so on,” he reportedly said in Parliament Monday, according to local news agency Harian Metro.
However, taking a different view to the communications and multimedia minister, Malaysia’s deputy finance minister Yamani Hafez Musa had said earlier this month that payments with cryptocurrency remain illegal within the country. “In general, digital assets are not a good store of value and a medium of exchange. This is because digital assets are vulnerable to volatile price fluctuations due to speculative investments, the risk of theft due to cyber threats, and lack of scalability,” Yamani Musa said in a statement released this month.
Back in January, Malaysia’s central bank – Bank Negara Malaysia – reportedly told Bloomberg that it was considering the possibility of issuing its own central bank digital currency, which might indicate that the country has no plans to introduce Bitcoin or other cryptocurrencies as legal tender.
Despite all the buzz around several other countries about adopting Crypto as legal tender, so far, only El Salvador has been able to cross that finish line.