We must move quickly on digital finance, says Anwar

PETALING JAYA: The government is considering drafting a policy on digital finance which could see Malaysia recognising the use of cryptocurrencies and the existence of blockchain technology.

Prime Minister Anwar Ibrahim said he had held discussions with the UAE government and cryptocurrency and blockchain giant Binance to explore the idea, reported Berita Harian.

Stating that digital finance is rapidly evolving, Anwar said it was crucial that Malaysia “moves quickly” and is not “trapped in the old financial system”.

“We are currently facing demands that require us to think about making significant changes,” he told Malaysian media at the end of his three-day official visit to Abu Dhabi.

“This innovation, like AI, will change the financial world. We should not sit idly and wait, only to be forced to act after others have already done so.

“Their (UAE) leaders feel that they can establish close cooperation with Malaysia on this issue. We need to discuss this in more detail and cast aside old business models.

“We have had extensive discussions about fintech. But when something new appears, we get anxious. So, I hope we can be more open to this.”

Anwar said he had previously proposed that agencies such as the Treasury and Bank Negara Malaysia (BNM) should examine how Malaysia could explore digital finance to ensure the country kept up with technology.

He also stressed that it was crucial that cryptocurrency and blockchain were regulated to protect the public’s interests and prevent data leaks.

Anwar said Malaysia would not be starting from scratch but will collaborate with other parties and draw on the experience of others, including Binance and the UAE.

Asked when the policy is expected to be implemented, Anwar said it would require a comprehensive study from the finance ministry, BNM and the Securities Commission.

He said a working paper on the matter would be prepared and presented to the Cabinet for approval as soon as possible.

“Like all new ideas that are raised, there will certainly be some concerns. This is because we need to train staff, build capacity, and get players to join in,” he said.

“The important thing is that we have a very good relationship with the UAE. We told them that we will move forward on this issue, with the condition that we collaborate as partners to ensure everything runs smoothly.

“This will be a radical change from the old way.”