New cash payment restrictions in Malaysia may increase the popularity of Bitcoin
The Malaysian government plans to set restrictions on cash transactions at up to 25,000 Malaysian ringgits (about $6300). According to the publication, this step is being taken as part of the fight against money laundering in the country. Datuk Abdul Rasheed Ghaffour, deputy president of Malaysia’s central bank Bank Negara (BNM), said:
“This is done to fight against the abuse of cash used for illegal activities.
Malaysian economist Barjoyai Bardai said, the proposed restriction on cash transactions in the country could speed up the adoption of cryptocurrencies. According to Bardaya, such restrictions could be a catalyst to encourage more and more people to switch to digital payment systems. He said:
“When consumers become comfortable with the use of digital currency, they will also be more inclined to do business with it, so business relations can become more active and have a positive impact on the economy.
The proposed cash payment restraint will affect industries such as medical tourism, hospitality, and wholesale trade. However, transactions made 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 have a negative impact on the average Malaysian citizen. According to the deputy president of the central bank, detailed research has shown that the average household income is less than $2,000, which is much lower than the proposed limit.
As a reminder, in July, the Australian Finance Ministry proposed to introduce restrictions on cash payments exceeding $10,000. The limit will not apply to payments in cryptocurrencies.