December 2, 2023

New cash restrictions in Malaysia could boost Bitcoin's popularity

Malaysia has joined the list of countries that have introduced restrictions on cash transactions. This step may forcemore people pay attention to BTC and other cryptocurrencies.

The Malaysian government plans to introducerestrictions on cash transactions up to 25,000 Malaysian ringgit (about $6,300), local media outlet The Star reported. 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 governor of Malaysia's central bank Bank Negara (BNM), said:

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

Malaysian economist Barjoyai BardaiBardai believes that the proposed cap on cash transactions in the country could speed up the adoption of cryptocurrencies. According to Barday, the presence of such restrictions could be a catalyst that encourages 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.

Let us recall that in July, the Australian Ministry of Finance proposed to introduce restrictions on cash payments exceeding $10,000. However, the limit will not affect payments in cryptocurrencies.