A senior Malaysian federal government minister has actually contacted his country to embrace bitcoin as legal tender.
El Salvador is the only nation to have actually embraced bitcoin as its main currency, doing so in September 2021.
Speaking about bitcoin ( BTC-USD) ending up being legal tender in Malaysia, deputy minister of interactions Zahidi Zainul Abidin spoke in the country’s parliament and stated, “we hope the government can allow this”.
This is the first signal that senior Malaysian officials are contemplating an El Salvador-style leap into crypto.
However, the country is not averse to digital currency, as it has been researching a central bank digital currency, CBDC, since September 2021.
In January the Malaysian central bank announced it was working on a proof of concept “to enhance our technical and policy capabilities, should the need to issue a CBDC arise in the future”.
Speaking to Yahoo Finance about Malaysia’s CBDC research, Gunnar Jaerv, COO from First Digital Trust said: “Countries considering the introduction of central bank digital currencies, while deviating from the tenets of crypto, marks the early stages of the shift in the discourse on these issues, which is an important prerequisite to further, more tangible changes.”
After Zahidi’s statement on Tuesday, the Twitter- sphere took off with anticipation with one high profile cryptocurrency supporter, called ‘Crypto Ayda’ stating, “it’s like a domino now, one after another will end up being an orange country and bitcoin adoption is inescapable”.
But, what do leaders of the cryptocurrency sector from within Malaysia consider the news, are they as thrilled as the crypto netizens on the Twitter sphere?
Read more: Live Crypto currency exchange rate
The Malaysian economy is much larger than that of El Salvador, and according to Chainalysis’ 2021 Global Crypto Adoption Index, it is ranked 23rd on the planet for cryptocurrency usage.
One specialist from Malaysia has actually spoken with Yahoo Finance about the possibility of the southeast Asian country “adopting cryptocurrencies as a legal tender in the future is very high but in the current landscape, it’s a steep uphill battle.
Harpreet Maan, president of Access Blockchain Association Malaysia said: “Although legalisation and policy clearance on crypto is becoming a bipartisan stand in Malaysian politics, where both opposition and ruling parties are in favour of it, there are a few exceptions.”
Maan did add that Malaysian authorities and regulators will require some time to catch up and develop policies to facilitate the adoption of cryptocurrencies as legal tender within the nation.
He added: “Malaysia is a relatively developed economy where we have strong institutions to facilitate traditional business sectors but we might have to restructure to facilitate the industries to come.”
Watch: Steve Hanke on crypto-lobbyists
Maan included that the long term effect of using bitcoin within Malaysia “will be a favorable driving force for our markets to end up being more ingenious and competitive”.
Malaysia is an ingenious international leader of Islamic financing, and embracing bitcoin might have a strong impact on other international nodes of Islamic financing.
Gunnar Jaerv of First Digital Trust thinks about the difficulty that the increasing adoption of cryptocurrencies exists to the world’s nation-states.
He stated: “However, what is clear is that countries all throughout the world have actually been required to create crypto-related job forces, policies and regulative structures.
“This is a reflection of sovereign countries being significantly responsive to the requirements and needs of their constituents and market forces, and of the crypto market ending up being too crucial to overlook.”
“Young individuals are at the leading edge of this shift, with the increasing combining of our digital and physical worlds powered by blockchain and emerging innovations forming social discourse on these subjects.
“The boost in the use of bitcoin and other cryptocurrencies is definitely reflective of the altering mindsets youths have towards the future of service and their individual financial resources.”