Malaysia’s Government Is Reportedly Still Deciding Whether Cryptocurrencies Should Be Legal

The government of Malaysia is reportedly still deciding whether or not cryptocurrencies should be legalized in the country, as according to its Federal Territories Minister Khalid Abdul Samad the “matter was still under consideration” as of January 12.

Speaking to local news outlet New Straits Times, the policymaker revealed that while he was involved in the launch of the Harapan Coin (HRP) – a propose political cryptocurrency – he wasn’t appointed the country’s finance minister, and as such can’t push the matter.

He was quoted as saying:

People have asked me if these [crypto]currencies are legal or illegal. At the moment, the answer is neither legal nor illegal as the situation is still unclear.

Notably, the Malaysian government claimed in December of last year that it was working on regulations for cryptocurrencies and initial coin offerings (ICOs). The Harapan Coin, according to the news outlet, has been pitched to the Bank Negara Malaysia, the country’s central bank, and to Prime Minister Tun Dr Mahathir Mohamad for government transactions.

Shortly after, a Malaysian Member of Parliament reportedly asked the government to set up proper cryptocurrency regulations before considering the HRP project.

Samad’s words came as he was commenting on the success of a school aid presentation for 100 orphans organized by Blockchains.My, a fintech venture. The cryptocurrency scene has been growing in Malaysia, and the country’s authorities have been keeping an eye on the market, as those looking to lunch cryptos must go through the central bank first.

In July of last year, over 12 Indian businessmen reportedly lost thousands of dollars to a Malaysian cryptocurrency Ponzi scheme.

Rwanda’s Central Bank Reportedly Considering Launcing Its Own Cryptocurrency

Michael LaVere
  • The National Bank of Rwanda is considering developing a digital currency. 
  • Planning to use Canada, Singapore and the Netherlands as model countries. 

The National Bank of Rwanda (NBR) is reportedly considering the development and launch of a state-backed cryptocurrency. 

Rwandan Digital Currency

According to a report by Bloomberg published on Aug. 22, the central bank is looking into the feasibility of launching a cryptocurrency that would make processing transactions more efficient in addition to boosting economic growth. 

The report claims that the NBR intends to learn from the experience of Canada, Singapore and the Netherlands--other countries that have tested the use of blockchain technology backing a central bank digital currency. 

Financial Stability Director-General Peace Masozera Uwase told Bloomberg in an interview, 

There are still concerns about how exactly you convert the entire currency into digital form, how to distribute that and how fast can you process those transactions. Challenges come in, if technology is down how do you deal with such issues? “We will join in once we are ready.

Rwanda’s consideration of a digital currency comes just weeks after it was reported that China’s central bank digital currency is set for launch, despite the country’s negative stance towards bitcoin and cryptoassets. 

However, the global attitude of central banks is gradually shifting towards the issuance of a digital currency, as existing financial systems seek to find ways to keep up with the fintech revolution being generated through crypto and blockchain.