Malaysia Explores Central Bank Digital Currency For Wholesale Payments

According to PANews, Malaysia's central bank is collaborating with several local financial institutions to explore the potential of wholesale central bank digital currency (CBDC) through a proof-of-concept study. This initiative aims to enhance Malaysia's wholesale payment system, RENTAS. The central bank is also actively involved in multiple cross-border wholesale digital currency and innovation projects led by the Bank for International Settlements Innovation Hub. These projects include the Dunbar Project, Mandala Project, Rialto Project, and mBridge Project, where the central bank primarily serves as an observer. These projects delve into the application of distributed ledger technology (DLT) and CBDCs to improve the efficiency of cross-border payments. The central bank's participation in these initiatives is driven by the goal of deepening the understanding of CBDCs within the institution and the financial industry, laying the groundwork for potential future developments.