Malaysian Central Bank: Cryptocurrency Belongs to the People, They Must Regulate it Themselves
While some governments and central banks see cryptocurrency as a massive threat to their existence and therefore formulate ‘acidic’ laws that would cripple the growth of the crypto ecosystem, Bank Negara, Malaysia’s Central bank is taking a more democratic approach towards cryptocurrency regulation.
Regulating Crypto is the People’s’ Duty
Bank Negara, Malaysia’s central bank, is set to release a brief document that will enable the public to decide how best to regulate the digital currency industry. The authority has made it clear that it will neither ban nor recognize cryptocurrencies.
As per the Borneo Bulletin governor of Bank Negara, Muhammad Ibrahim, who was present at the 40th-anniversary dinner party of the Harvard Business School Alumni Club of Malaysia, said that a concept paper on cryptocurrency is almost ready and the public will be given a chance to decide the fate of virtual currencies.
He also noted that the central bank would not give digital money the same status with fiat currency but would instead leave its regulation to crypto investors.
In his words:
“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”
Harsh Crypto Laws would Destroy Creativity and Innovation
Unlike its Asian brothers, China, Malaysia does not see blockchain-money as a threat to its economy; the country of more than 31 million people instead wants to create an enabling environment for cryptocurrency to thrive.
Finance Minister II Johari Abdul Ghani hinted that placing a ban on cryptocurrency is not on the agenda of the nation as such a move would “curb creativity and innovation in the financial sector.”
The high-ranking official also stated that research has it that many people aged 35 to 45 have gone bankrupt because of credit card use. He also declared that 40 percent of low-income earners (below RM3,855 or $990.16) still cannot afford to buy decent houses.
In his words, “If your salary is about RM3,000 ($770.58), you can only afford to buy a RM180,000 ($46,243.80) property. But where can you find this type of property? We need to rectify this through the market mechanism.”
The Need for Favorable and Transparent Policies
The governor stressed the need for policymakers to be abreast with the latest trends in information science and technology to enable them to enact laws that will be beneficial to all aspects of the economy. He also pointed out that financial policies need to be transparent and well communicated to the masses.
In contrast to recent developments out of Egypt, where the country’s Grand Mufti made it clear that cryptocurrency is not compatible with Islam, Malaysia, as the leading center of Islamic finance, takes a more positive stance. However, Malaysia is not alone in its liberal and democratic stance toward the cryptocurrency ecosystem.
As reported by BTCManager back in September 2017, the Bank of Finland said in a report that bitcoin is genuinely a self-regulating and revolutionary system of currency that is near impossible to manipulate due to its underlying blockchain technology.