Attractive Cryptocurrency Statement from the Malaysian Ministry of Finance!

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Malaysian deputy finance minister has announced that cryptocurrencies such as Bitcoin and Ethereum are not suitable as a means of payment or a store of value. While digital assets are not recognized as legal tender in Malaysia, the finance ministry official said they are only an investment class.

Cryptocurrency Description from Malaysia

Malaysian Deputy Finance Minister Yamani Hafez Musa spoke about cryptocurrency on Thursday in response to a question posed by member of parliament Nurul Izzah Anwar at Dewan Rakyat. A member of parliament asked Yamani Hafez Musa about the government’s role in monitoring and regulating cryptocurrency.

The deputy finance minister stated that cryptocurrencies are not a payment instrument regulated by the central bank, Bank Negara Malaysia, and said;

“Digital assets such as Bitcoin and Ethereum are not suitable for use as a means of payment… In general, digital assets are not a store of value and a good medium of exchange.”

Musa also stated that this is due to the situation of digital assets, which are subject to volatility as a result of speculative investments. The deputy finance minister also explained that cryptocurrencies are not suitable as a means of payment because they do not “show money”.

Yamani Hafez Musa went on to discuss the various issues he sees with cryptocurrency, including the high volatility in cryptocurrencies, the risk of theft, cyber attacks, and its inability to process as many transactions as the current Visa payment system. He also expressed his concerns about the environmental impact of cryptocurrency mining, saying:

“Furthermore, what matters is the huge impact on the environment because the electrical power used to process one Bitcoin transaction can process 1.2 million Visa transactions.”

Bitcoin’s energy use has been a controversial issue, including claims that Bitcoin transactions use much more energy than Visa transactions.

Nic Carter of Castle Island Ventures explained that the comparison between the energy use of Bitcoin transactions and that of Visa transactions is “based on many misunderstandings of Bitcoin.”

Nic Carter went into more detail in his statements and said:

“In short, the comparison between Visa and Bitcoin is wildly off-base. This is an apple-koala comparison. Visa is ultimately a payment network based on the underlying financial infrastructure. Bitcoin is a financial infrastructure. ”

Galaxy Digital Compared The Banking System With Bitcoin

In addition, Galaxy Digital released a report in May last year showing that its banking system uses significantly more energy than Bitcoin.

While digital assets are not recognized as legal tender in Malaysia, the finance ministry official said they still have many different uses, including as an investable asset class. He noted that the country’s Securities Commission defines crypto assets as securities under its law, and that the regulator currently oversees crypto trading activities in the country.

In addition, the deputy minister of finance made the following statements in the continuation of his statements;

“Monetary policy instruments and available financing continue to be instrumental in maintaining monetary stability and the country’s finances.”