Malaysia's central bank names BTC and XRP as potential bank deposit alternatives.

Malaysia's central bank names BTC and XRP as potential bank deposit alternatives.

Malaysia's central bank, Bank Negara Malaysia (BNM), has sparked interest in the crypto community with its recent working paper, which explores the potential of XRP and Bitcoin (BTC) as alternatives to traditional bank deposits. The paper, titled "Fundamentals of Modern Money and its Application to Central Bank Digital Currency (CBDC): An Exploratory Shariah Analysis" (WP3/2025), highlights the technological attributes of these cryptocurrencies that make them suitable for payment systems [1].

BNM emphasizes XRP's low-cost, high-throughput, and near-instant settlement capabilities, positioning it as a viable alternative to conventional banking for near-instant settlements. The report contrasts XRP with Bitcoin and Ethereum, noting that while these cryptocurrencies are better suited for store-of-value functions due to their high volatility and limited throughput, XRP's transactional suitability makes it a more suitable candidate for payment infrastructure [1].

The working paper also acknowledges the potential risks of disintermediation and the impact on monetary control, but it remains exploratory in nature and does not signal any immediate regulatory or policy shift. BNM's examination of XRP places Malaysia among a small group of central banks exploring the role of private tokens in future payment systems [1].

While the paper does not speculate on adoption timelines or project specific outcomes, it serves as a foundation for future initiatives, including pilot programs for tokenized payments, integration with CBDC efforts, and the development of Shariah-compliant regulatory frameworks. Any practical adoption would require a phased approach, including legal reforms, infrastructure development, and consumer protection measures [1].

The report's focus on technical and regulatory feasibility highlights BNM's cautious but forward-thinking approach to digital currencies. As regulations tighten and digital finance grows more sophisticated, central banks are increasingly exploring the potential of cryptocurrencies to enhance payment systems and monetary control.

References:
[1] https://www.ainvest.com/news/xrp-news-today-malaysia-central-bank-explores-xrp-potential-payment-system-alternative-2508/
[2] https://timestabloid.com/earn-daily-btc-xrp-doge-with-quid-miner-uk%e2%80%91regulated-mobile/
[3] https://thetradable.com/crypto/xrp-latest-news-malaysias-central-bank-eyes-ripple-token-as-bank-deposit-alternative-ig--m