Malaysia\u2019s central bank recently completed a proof-of-concept for a CBDC with three other nations and may consider developing its own <\/p>\n\n\n\n
cross-border payment system using the blockchain.<\/p>\n\n\n\n
Malaysia has joined the growing cadre of nations that are exploring the value of researching and developing a central bank digital currency (CBDC).<\/p>\n\n\n\n
Malaysia\u2019s central bank, Bank Negara Malaysia, stated<\/a> to Bloomberg on Monday that while a decision about exactly how to move forward <\/p>\n\n\n\n with a CBDC has not yet been determined, it has focused research on a CBDC \u201cvia proof-of-concept and experimentation to enhance our <\/p>\n\n\n\n technical and policy capabilities.\u201d<\/p>\n\n\n\n It also stated that the ostensible reason for the current research effort was to ensure it is prepared to launch a CBDC program \u201cshould the <\/p>\n\n\n\n need to issue CBDC arise in the future.\u201d<\/p>\n\n\n\n In 2021, Malaysia collaborated with South Africa, Australia and Southeast Asian neighbor Singapore to develop a proof-of-concept CBDC pilot <\/a><\/p>\n\n\n\n called Project Dunbar<\/a>, according to a joint announcement. Project Dunbar utilized the Corda and Quorum blockchain platforms from r3 and <\/p>\n\n\n\n ConsenSys, respectively, to demonstrate various capabilities of blockchain-based cross-border remittances. Most notably, it aimed to demonstrate <\/p>\n\n\n\n how blockchain technology could \u201celiminate the need for intermediaries and cut the time and cost of transactions.\u201d<\/p>\n\n\n\n An increasing number of nations are researching how a CBDC program would operate in their jurisdiction. China is by far the largest nation currently <\/p>\n\n\n\n executing a CBDC pilot program, dubbed the digital yuan, and the mobile app already has<\/a> over 20 million downloads since Jan. 4. China plans to <\/p>\n\n\n\n launch the program and allow international visitors to access<\/a> the digital yuan with their passports during the upcoming Winter Olympics in Beijing next month.<\/p>\n\n\n\n Related: CBDCs and stablecoins: EY advises banks to \u2018prepare for what\u2019s coming\u2019<\/strong><\/p>\n\n\n\n The Eastern Caribbean Central Bank (ECCB) rolled out its finalized CBDC, called the \u201cEC dollar,\u201d<\/a> in March 2021. As of December 2021, Antigua was the last <\/p>\n\n\n\n of eight jurisdictions in the ECCB not to have adopted the EC dollar. Nearby Jamaica also plans on launching a finalized CBDC<\/a> by Q1 2022 following a successful <\/p>\n\n\n\n pilot program, which concluded two weeks ago.<\/p>\n\n\n\n