For one week in March, Malaysia debated becoming the next El Salvador. It didn't last.
On 21 March in the Dewan Rakyat, Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin proposed that Malaysia adopt cryptocurrency as legal tender to "increase the youth's uptake" — pointing to young Malaysians' activity on NFT platforms, with one MP citing a local creator who made "up to RM3.5 million" from NFT sales. Zahidi conceded the decision ultimately lay with Bank Negara Malaysia and the Securities Commission.
The Finance Ministry's answer
It came quickly, and twice. Deputy Finance Minister I Mohd Shahar Abdullah had already told Parliament on 3 March that cryptocurrencies are not recognised as legal tender. Today he formally ruled out adoption: cryptocurrencies like Bitcoin "are not suitable for use as a payment instrument" due to price volatility and exposure to cyber threats.
Reading the room
The association's take: the outcome was never in doubt — BNM's position on legal tender has been consistent since 2014. What's notable is where the conversation is happening. Crypto and NFTs are now Dewan Rakyat material, championed (however clumsily) as a youth economic opportunity. The policy question worth asking was never "legal tender or not" — it's how Malaysia builds regulated rails for digital assets while the neighbours compete for the same builders. That race is very much on.
References
- The Star — "Comms Ministry proposes adopting cryptocurrency as legal tender" (21 Mar 2022)
- Malay Mail — legal tender proposal coverage (21 Mar 2022)
- Bloomberg — "Malaysia should adopt crypto as legal tender, ministry says" (21 Mar 2022)
- The Star — "Malaysia rules out adopting cryptocurrency as legal tender" (25 Mar 2022)