January 27, 2023

New cash restrictions in Malaysia could boost Bitcoin's popularity

Malaysia has added to the list of countries that have imposed restrictions on cash transactions. This step may force more people pay attention to BTC and other cryptocurrencies.

Malaysian government plans to introducerestrictions on cash transactions of up to 25,000 Malaysian ringgit (about $ 6300), local media reported The Star. According to the publication, this step is being implemented as part of the fight against money laundering in the country. Datuk Abdul Rasheed Ghaffour, Deputy President of the Central Bank of Malaysia Bank Negara (BNM), noted:

“This is being done to combat the abuse of cash used for illegal activities.”

Malaysian economist Barjoyai Bardai (BarjoyaiBardai) believes that the proposed restriction on cash transactions in the country could accelerate the adoption of cryptocurrencies. According to Bardai, the presence of such restrictions may become a catalyst, prompting more and more people to switch to digital payment systems. He said:

“When consumers get used to usingdigital currency, they will be more inclined to carry out business operations with it, so business relations can become more active and have a positive impact on the economy. ”

Proposed cash limitAffects industries such as medical tourism, hospitality and wholesale. However, transactions through financial institutions are not subject to the new restriction policy, as banks already have strict anti-money laundering (AML) requirements.

According to Rashid, the proposed plan will not havenegative impact on the average citizen of Malaysia. According to the vice president of the central bank, detailed studies have shown that the average household income is less than $ 2,000 dollars, which is much lower than the proposed limit.

Recall that in July, the Australian Ministry of Finance proposed introducing restrictions on cash payments in excess of $ 10,000. However, the limit will not affect payments in cryptocurrencies.