Malaysia’s central bank, officially known as Bank Negara Malaysia (BNM), published a working paper that explores the possibility of Bitcoin and XRP serving as future monetary alternatives.
As the world is currently pushing toward a pro-crypto stance, the Southeast Asian country, Malaysia, also took the initiative to shape its traditional infrastructure. The country is planning to innovate the traditional banking system by allowing digital assets as an alternative.
The BNM published a paper in July that explicitly stated, “Private tokens such as Bitcoin or XRP may be widely used as means of payment outside the banking system in the future, replacing CIC or bank deposits.”
However, this may only be implemented after fulfilling the requirements. BNB said, “It is argued that these private decentralised tokens must overcome large obstacles to be able to complement or replace the current payment system.”
“Hence, cryptoassets may exist outside the regulated banking system, but not necessarily in a decentralised manner,” it added.
While the central bank is allowing for crypto utility as a payment tool, it is also imposing some conditions to mitigate risks. To execute the new initiative, it is crucial for the BNM to provide regulatory clarity and consumer protection to prevent any associated risks.
The bank said it also needs to build a robust technological system that can handle high transaction volume. The regulators must address price volatility before initiating for large crypto adoption via the new payment system.
In 2025, crypto has rapidly surged in terms of price, supply, regulations, clarity, and adoption. Many large industries and major countries have integrated crypto into their standard ecosystem of finance. Now, Malaysia has taken a pivotal stance that proves its openness to crypto. This forward-thinking initiative with Bitcoin and XRP can inspire other nations to conduct similar studies.
Malaysia’s central bank (BNM) is exploring crypto payments but requires regulatory frameworks, price stability solutions, and technological upgrades before implementation.
BNM requires: 1) Price stability mechanisms 2) Robust transaction systems 3) Clear regulations 4) Consumer protections before crypto payment integration.
BNM highlighted these assets due to their established networks – Bitcoin as digital gold and XRP for cross-border payments – though final implementation may include other cryptos.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Ripple Labs is on an aggressive mission to dominate financial infrastructure. Since early 2025, the…
The crypto market is heating up fast, and 2025 could be the year fortunes are…
The crypto market is picking up again. The total market value has risen to $3.55…
Coinbase has launched a new platform giving retail investors early access to digital tokens in…
The FET price USD has shown a strong November recovery, breaking from a local swing-pattern…
XRP is back in the spotlight after a strong 12% surge in the last 24…
