As cryptocurrencies experience a jump in prices, will Malaysia consider making crypto legal tender? It’s no surprise that the most popular cryptocurrencies, Bitcoin and Ethereum, went up today. Several bullish news items have fueled them.
A government official proposed a question to the country of Malaysia as to whether they will accept crypto as legal tender. The deputy minister of communications, Zahidi Zainul Abidin addressed the request to parliament. The government then began to put this into action in January to no avail. However, Abidin might have opened the door to accepting other cryptocurrencies.
El Salvador is the first country to take this leap of accepting Bitcoin payments, of course, and the USD. Malaysia would be the country to follow through after El Salvador, as they have a large economy along with a significantly larger population.
As a result, whatever occurs in Malaysia regarding legal tender is more likely to have a long-term impact on Bitcoin and another crypto. However, Malaysia’s cryptocurrency evaluation is still in its early stages. Malaysia is also partnering with Australia, Singapore, and South Africa governments to establish an international payment system based on digital assets to be supplied by each country’s central bank. On Tuesday morning, the panel evaluating this notion stated that a prototype platform for border-crossing digital payments is “technically possible.”
Ethereum has been on the same boat as bitcoin as they both were gaining more value. Even though the smart contract platform of Ethereum was burning tokens as it awaited its upgrade, it will be transitioning from proof of work to proof of stake. This will result in the creation of new tokens to be dropped by a significant amount of almost 90%. Several major media sites reported on Ethereum’s growth, adding to the digital currency’s fires on Monday afternoon.
This is not to say that this made up for the market’s weakness in the past couple of months. Prices are still low, but the future of gains will make up for it.