Malaysian Central Bank has on Tuesday launched Digital Asset Innovation Hub.

Bank Negara Malaysia (BNM) said in a statement that the initiative aims to stimulate financial innovation in a controlled environment for applicants to test new ideas and provide input to fine-tune regulatory and security frameworks.

It noted that this is to support the development of digital assets and the application of leading-edge financial technology in Malaysia.

Malaysia’s Prime Minister Anwar Ibrahim said in its speech that the hub is a testament to Malaysia’s commitment to ensure policy evolves alongside innovation.

“The hub will serve as a catalyst for progress, enabling innovators to test use cases such as programmable payments, ringgit-backed stable coins and supply chain financing; unlocking new efficiencies across the financial system and the broader economy,” he said.

He noted that the country’s ambition is clear: to align infrastructure, policy and talent, across both the public and private sectors, in pursuit of a digitally capable, future-ready Malaysia.

He highlighted that this national vision is closely tied to the country’s regional commitments.

“As ASEAN deepens cooperation in digital connectivity, energy transition and macroeconomic stability, Malaysia continues to play a proactive role in shaping a connected, inclusive and sustainable future for our region,

“At the heart of these efforts is a deeper purpose. We are not merely adopting technology for its own sake, but building systems rooted in trust, driven by transparency and designed to serve both our national and regional interests,” he added.

He also said Malaysia is charting a bold course in digital transformation, guided by national strategies such as the Digital Economy Blueprint, the Financial Sector Blueprint and the Capital Market Masterplan.

He opined that together, these frameworks lay the foundation for a agile, resilient and future-ready economy.

“Few may realize that Malaysia was among the early movers in the digital asset space, having begun exploring central bank digital currencies as early as 2017,

“These efforts gained momentum with the establishment of a formal regulatory framework in 2019, providing much-needed clarity and confidence in the trading of, and investments
into, crypto assets,” he said.

The central bank has also on Tuesday witnessed the launch of the Climate Finance Innovation Lab (CFIL) by the Joint Committee on Climate Change (JC3).

“Structural reforms are not something one institution or individual can tackle alone. It requires a whole-of-nation approach,

“Reforms and policies are not mere ideas on paper. They can make a real difference in the everyday lives of Malaysians,” BNM Governor Abdul Rasheed Ghaffour said.

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