Malaysia assesses use of digital central bank money

Malaysia has started an assessment of the potential benefits of a central bank-backed digital currency, Bank Negara Malaysia said according to a Bloomberg News report.

The central bank noted it was “actively assessing the value proposition” of a central bank digital currency for Malaysia.

While a decision has not been made to issue such a digital currency, research has been focused on proof-of-concept methods and the enhancement of technical and policy capabilities, “should the need to issue a digital currency arise in the future,” the central bank said.

Malaysia in September last year joined forces with the Bank for International Settlements, Australia, Singapore and South Africa to test the use of central bank digital currencies for international settlements via a shared platform in a project dubbed Project Dunbar.

More countries starting pilot projects for digital central bank money

Several countries, most notably China, have been testing the use of central bank-issued digital currencies as a way to make everything from interbank transfers to consumer purchases cheaper and more efficient. In a first step, China will be offering athletes and spectators the use of its digital yuan ahead of the Beijing Winter Olympics, which starts next month.

Cambodia has been successfully launched its own central bank-backed digital currency, the Bakong, last October and also introduced a new mobile cross-border remittance service together with Malaysian banking group Malayan Banking, or Maybank, using the token in a first for Southeast Asia, a move which might have inspired Bank Negara Malaysia additionally.

As it stands, nine more countries globally – The Bahamas, seven Eastern Caribbean islands, as well as Nigeria – have so far launched a central bank-backed digital currency apart from Cambodia and 14 are in the pilot stage, including China, Thailand, Singapore, South Korea, the UAE, Saudi Arabia, Sweden, Turkey and South Africa, according to US think tank Atlantic Council.



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Malaysia has started an assessment of the potential benefits of a central bank-backed digital currency, Bank Negara Malaysia said according to a Bloomberg News report. The central bank noted it was “actively assessing the value proposition” of a central bank digital currency for Malaysia. While a decision has not been made to issue such a digital currency, research has been focused on proof-of-concept methods and the enhancement of technical and policy capabilities, “should the need to issue a digital currency arise in the future,” the central bank said. Malaysia in September last year joined forces with the Bank for International...

Malaysia has started an assessment of the potential benefits of a central bank-backed digital currency, Bank Negara Malaysia said according to a Bloomberg News report.

The central bank noted it was “actively assessing the value proposition” of a central bank digital currency for Malaysia.

While a decision has not been made to issue such a digital currency, research has been focused on proof-of-concept methods and the enhancement of technical and policy capabilities, “should the need to issue a digital currency arise in the future,” the central bank said.

Malaysia in September last year joined forces with the Bank for International Settlements, Australia, Singapore and South Africa to test the use of central bank digital currencies for international settlements via a shared platform in a project dubbed Project Dunbar.

More countries starting pilot projects for digital central bank money

Several countries, most notably China, have been testing the use of central bank-issued digital currencies as a way to make everything from interbank transfers to consumer purchases cheaper and more efficient. In a first step, China will be offering athletes and spectators the use of its digital yuan ahead of the Beijing Winter Olympics, which starts next month.

Cambodia has been successfully launched its own central bank-backed digital currency, the Bakong, last October and also introduced a new mobile cross-border remittance service together with Malaysian banking group Malayan Banking, or Maybank, using the token in a first for Southeast Asia, a move which might have inspired Bank Negara Malaysia additionally.

As it stands, nine more countries globally – The Bahamas, seven Eastern Caribbean islands, as well as Nigeria – have so far launched a central bank-backed digital currency apart from Cambodia and 14 are in the pilot stage, including China, Thailand, Singapore, South Korea, the UAE, Saudi Arabia, Sweden, Turkey and South Africa, according to US think tank Atlantic Council.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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