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- Yamani Hafez Musa, Malaysia’s Deputy Finance Minister, thinks that crypto-assets like ETH and BTC are not suitable as a mode of transaction.
- While virtual assets are not identified as legal tender in the nation, an official of the finance ministry is in favor of those assets being suitable for investment.
- As of this writing, Bitcoin was trading at a market value of $41,635.12, down by 3.66% in the previous 24 hours.
Deputy Finance Minister on Digital Assets In Malaysia
Yamani Hafez Musa, Deputy Finance Minister in Malaysia has opened up regarding crypto assets in response to a question asked by Nurul Izzah Anwar, a parliament member.
As per the reports, the question was regarding the government’s part in controlling and tracking crypto assets.
The Finance Minister said virtual assets like ETH and BTC do not fit the bill to become an instrument of payment. In general, crypto assets are not a good mode of exchange as well as a store of value.
Additionally, he said this is because of the status of virtual assets having exposure to volatility as an outcome of speculative investments. He also elaborated that they do not fit the bill because of the non-existing characteristics of money.
Crypto Mining Bad For the Environment
The Deputy Minister also debated various issues regarding theft risk, cyberattacks, volatility, and its lack of ability to process transactions similar to Visa. He was also concerned about the environmental influence of crypto mining.
He stated that what is vital is the massive influence of mining on the environment, as electrical energy is utilized in mining, a BTC transaction can process 1.2 million transactions in Visa.
The power consumption of Bitcoin mining has remained a heated debate, involving the claim that they utilize more power than Visa transactions.
Castle Island Ventures’ Nic Carter elaborated that the contrast between the power usage in BTC and Visa transactions depends on several misunderstandings of Bitcoin. He added that Bitcoin and Visa comparison is off base, and said it is similar to apple’s contrast to koalas.
He added, Visa is a transaction network relying upon, eventually, an underlying monetary framework, on the other hand, Bitcoin is an economic framework, and is a complete stack financial network.
Additionally, a report suggests that the previous year’s banking system utilized a myriad more energy than Bitcoin.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
