Malaysia’s Central Bank Negara Lets Public Decide The Future Of Cryptocurrencies
Muhammad Ibrahim, the governor of Malaysian Central Bank – Bank Negara revealed that a concept paper on cryptocurrencies shall be finalised within February which will enable public to decide the future of cryptocurrencies in Malaysia. He gave extra stress on the fact that cryptocurrencies shall not be given the recognition of a fiat currency by the country’s central bank. However, Bank Negara would leave the fate of cryptocurrencies in Malaysia to be decided by the ultimate market rather than imposing a ban on its functioning.
He pointed out that:
“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.”
These revelations were made by Muhammad during a question and answer round on the eve of 40th anniversary dinner of Harvard Business School Alumni Club of Malaysia. The stand taken by Malaysia is significantly different than an array of other countries who have decided to bottleneck the cryptocurrency flow in its entirety. Finance Minister II Johari Abdul Ghani revealed that there are no plans to ban cryptocurrencies in Malaysia since doing the same shall “curb creativity and innovation in financial sector.”
However, people belonging to the age group of 35-45 are slowly moving towards bankruptcy given their growing inclination of using credit cards. Muhammad said that 40% of lower income group still cannot afford to purchase a house.
“If your salary is about RM3,000 (USD789.47), you can only afford to buy a RM180,000 (USD 47,368) property. But where can you find this type of property?” he questioned.
“We need to rectify this through market mechanism,’’ he said while talking about the high-end condominiums which are oversupplied given their overly expensive price tags.
Major changes are taking shape in our surrounding environment courtesy big data and technological advancements. In such a scenario, Muhammad said that it is imperative for policy makers to take note of the same as their scope is increasing on the go. Corporate sector is wishing for the regulators to ease out stringent provisions so that they can search for further business opportunities. But the inherent risks make it mandatory for the involved authorities to revise unfriendly practices for upholding the growth potential and maintaining market stability.
Muhammad also feels that the policy makers should procced with independent execution of whatever comes in their way. The policies also need to be transparent for establishing open communications with the public to make them understand its effectivity.
He concluded by saying:
“When necessary, policy makers should be bold in drafting policies especially when the operation in financial and economic system face pressure or the yardsticks are no longer effective,”
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