<span style="font-weight: 400">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.</span>
<h2>Digital Finance Minister Argues Against Crypto</h2>
<span style="font-weight: 400">Anwar questioned the government's role in monitoring and regulating cryptocurrencies. As it is known, cryptocurrencies are not a mode of payment regulated by <a href="https://www.bnm.gov.my/" target="_blank" rel="nofollow noopener">Bank Negara Malaysia</a>, the central bank. </span>

<span style="font-weight: 400">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. </span>

<span style="font-weight: 400">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. </span>
<blockquote><span style="font-weight: 400">“The electrical power used to process 1 BTC transaction can process 1.2M Visa transactions.”</span></blockquote>
<h2>Crypto Enthusiasts Disagree with Hafez</h2>
<span style="font-weight: 400">However, the investment firm <a href="https://www.cryptoknowmics.com/news/galaxy-digital-lends-a-25-million-bitcoin-backed-loan-to-argo-blockchain/">Galaxy Digital</a> 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 energy is significantly more than Bitcoin’s. </span>

Carter further states while Visa acts as a payment network relying on financial structure, Bitcoin, on the other hand, is a financial structure. He asserts that Bitcoin is a "full-stack monetary network."

<span style="font-weight: 400">The Deputy Finance Minister concludes that while Malaysia is presently not recognizing digital assets as legal tender, they do encourage the use of it. </span>

<span style="font-weight: 400">On the other hand, countries including <a href="https://www.cryptoknowmics.com/news/japanese-financial-giant-nomura-to-launch-new-digital-asset-division/">Japan</a> and Singapore have adopted a positive approach to digital currencies - recognizing them as <a href="https://www.cryptoknowmics.com/news/arizona-introduces-bill-to-make-bitcoin-legal-tender/">legal tender</a> as well as setting a framework to regulate and tax them. </span>

Malaysian Deputy Finance Minister Voices His Opinions on Cryptocurrency

Malaysian Deputy Finance Minister has voiced his opinions on cryptocurrency and said that Bitcoin and Ethereum lack “characteristics of money.”

Priyanka is an active crypto enthusiast. Having graduated with a BA in Journalism and Mass Communication, she is a passionate content writer with a strong understanding of financial content. She has been writing on crypto and blockchain-related topics for the last three years and is an active trader.

Malaysian Deputy Finance Minister Voices His Opinions on Cryptocurrency

Top Picks