As per reports emerging from Kuala Lumpur, Bank Negara governor Muhammad Ibrahim is said to have assured the stakeholders that the bank will neither ban nor recognize cryptocurrency and that a concept paper will be finalized soon. If everything goes as per plans, the Malaysia central bank will release the concept paper on cryptocurrencies for public consideration later this month. The concept paper will call for the public to decide the fate of cryptocurrencies in the South Asian country.
Speaking at the 40th-anniversary dinner of Harvard Business School Alumni Club of Malaysia, governor Muhammad Ibrahim said, “Basically, we will let the cryptocurrency promoters including bitcoin, ethereum and ripple to be more transparent, the methods to be more transparent and people behind the scene are to be more transparent too. By doing so, the public can decide on its own if they want to invest in cryptocurrencies.’’
In January this year, the Singapore finance minister said his country would not completely ban transaction on cryptocurrency as such move would “curb creativity and innovation in the financial sector”. Unlike other countries, this South Asian country has been exceptionally supportive of digital currencies and is exploring ways to implement blockchain technology in various sectors.
It can be noted that Monetary Authority of Singapore (MAS) in association with an industry consortium is exploring the use of Distributed Ledger Technology (DLT) for clearing and settlement of payments and securities. Codenamed ‘Project Ubin’ the technology is expected to be fully operational by 2020.
The consortium includes Bank of America Merrill Lynch, Credit Suisse, DBS Bank, The Hongkong And Shanghai Banking Corporation Limited, J.P. Morgan, Mitsubishi UFJ Financial Group, OCBC Bank, R3, Singapore Exchange, UOB Bank, and BCS Information Systems as a technology provider to the project. Under the project, MAS is working on a digital equivalent of Singapore Dollar for settling inter-bank transfers.