Malaysia is considering the development of a policy for digital finance that could lead to the recognition of cryptocurrency and blockchain technology in the country. Prime Minister Datuk Seri Anwar Ibrahim disclosed this during his three-day official visit to Abu Dhabi, where he engaged with local leaders and cryptocurrency giant Binance.

Discussions with Abu Dhabi and Binance
According to The Straits Times, discussions with the Abu Dhabi government and Binance co-founder, Changpeng Zhao (CZ), revolved around the digital transformation landscape, including data centers, artificial intelligence (AI), and financial innovations. “We now face demands which require us to think about making significant changes,” Anwar said, emphasizing the need for Malaysia to remain competitive in the rapidly evolving digital finance sector while ensuring safeguards to protect public interests.

Anwar also revealed that he had instructed relevant agencies such as the Treasury, the Securities Commission, and Bank Negara Malaysia to explore the potential for integrating cryptocurrency and blockchain technology. He added that regulatory measures would be prioritized to prevent financial leakages and secure public trust. "This innovation, like AI, has the potential to revolutionize the financial world. We should not wait until others have moved forward to act," he remarked.

Learning from UAE and Global Leaders
The Prime Minister pointed to the United Arab Emirates (UAE) as a leading example in this field and noted the possibility of close collaboration between Malaysia and the UAE. Anwar also highlighted Malaysia’s advantage in learning from established players like Binance and the UAE to expedite the process.

Proposal for Cabinet Consideration
The government plans to draft a detailed proposal for cabinet consideration, with a focus on comprehensive studies, competency development, and private sector participation. Anwar expressed urgency in advancing the initiative, stating, “This is an evolution which happens quickly and requires us to be equally fast. We feel that Malaysia should not be left behind while mired in an old financial system.”

Conclusion and Next Steps
The timeline for the policy's implementation remains uncertain, as it hinges on thorough consultations and preparations. However, Anwar assured that a paper on the issue would be presented to the cabinet for endorsement at the earliest opportunity. "This will be a radical departure from the old ways," he concluded.