Bank Negara Malaysia (BNM) has clarified that it has no immediate plans to introduce a wholesale central bank digital currency (CBDC) but is actively studying its potential to enhance financial systems. The central bank emphasized the importance of preparing for future developments in digital payments while safeguarding the stability of the financial system.
At a Digital Payments Media Workshop, BNM underscored that the global interest in CBDCs is growing, with 94% of central banks engaged in exploratory efforts. Wholesale CBDCs are designed for interbank payments and securities transactions, offering the promise of greater efficiency in cross-border payments and advancing financial inclusion, according to the World Economic Forum.
“Digital assets have evolved significantly, with increasing focus on how blockchain and distributed ledger technology (DLT) can improve the economy,” Bank Negara stated.
The bank began its exploratory work on wholesale CBDCs in 2017, aiming to address existing inefficiencies and achieve key public policy objectives. These efforts include collaboration with the Securities Commission to maintain the integrity and stability of Malaysia’s financial system amidst the rapid evolution of digital assets.
“Our current exploration is primarily focused on wholesale CBDCs for both cross-border and domestic applications. Additionally, we are working alongside other central banks on projects led by the BIS Innovation Hub,” the central bank revealed.
In its analysis of digital assets, BNM highlighted the promise of tokenized deposits and CBDCs in revolutionizing payment systems. These forms of digital value, it argued, are more stable and secure than crypto assets, which remain subject to significant volatility and market supply-demand dynamics.
“This is in comparison to a crypto asset, where the value is subject to much more volatility and is also subject to dynamics in terms of market supply and demand,” Bank Negara stated. “As a result, the general view is that from a payments perspective, crypto assets may not be suitable for payment systems.”
While the bank remains cautious about embracing CBDCs outright, it acknowledged their potential in addressing inefficiencies in the financial system. Preparatory work and collaborative efforts aim to ensure that Malaysia’s financial infrastructure is future-ready and resilient.
As global interest in CBDCs accelerates, Bank Negara’s measured approach reflects its commitment to balancing innovation with financial stability, ensuring that the country remains at the forefront of the evolving digital economy.
