Malaysian Deputy Finance Minister Voices His Opinions on Cryptocurrency

Malaysian Deputy Finance Minister Yamani Hafez expressed his opinions on cryptocurrency in an answer to a question posed by parliament member Nurul Izzah Anwar in Dewan Rakyat. Digital Finance Minister Argues Against Crypto Anwar questioned the government’s role in monitoring and regulating cryptocurrencies. As it is known, cryptocurrencies are not a mode of payment regulated by Bank Negara Malaysia, the central bank. According to Yamani Hafez, digital currencies such as Bitcoin and Ethereum are not acceptable as “payment instruments” since they lack “characteristics of money.” His justification about digital assets not being a store of value or a good medium to exchange points towards the state of digital assets that are highly exposed to volatility. Additionally, Yamani Hafez proceeded to discuss issues associated with cryptocurrencies, which besides volatility included risk of theft, cyberattacks, inability to process numerous transactions as the Visa payment system does, and the several environmental impacts of crypto mining. “The electrical power used to process 1 BTC transaction can process 1.2M Visa transactions.” Crypto Enthusiasts Disagree with Hafez However, the investment firm Galaxy Digital and Castle Island Ventures’ Nic Carter disagree. Carter states that Hafez’s comparison of Bitcoin and Visa transactions is like comparing apples to koalas. Galaxy Digital’s report also states that the banking system’s usage of e...