BNM Expected To Complete Domestic Wholesale CBDC Proof-of-Concept By Year-End -- MOF
KUALA LUMPUR, Oct 22 (Bernama) -- Bank Negara Malaysia (BNM) is expected to complete its proof-of-concept for a domestic wholesale central bank digital currency (CBDC) by the end of this year.
The Ministry of Finance (MoF) said that this initiative aims to assess the potential of CBDC in a controlled environment.
It is intended to strengthen the country's wholesale payment system, specifically the Real-time Electronic Transfer of Funds and Securities System (RENTAS), as well as to enhance the understanding and capabilities of BNM and the financial industry relating to the potential of the Distributed Ledger Technology (DLT) and CBDC.
“This is to ensure the country's readiness to support the potential issuance of a CBDC in the future. BNM is also actively involved in cross-border wholesale CBDC innovation projects led by the Bank for International Settlements Innovation Hub together with several other central banks,” the ministry said in a written reply published on Parliament’s website today.
According to the MoF, among the projects involved are Project Dunbar, Project Mandala, and Project Rialto, which explore the use of multi-CBDCs to facilitate cross-border wholesale payments that are more efficient, faster, and secure.
The ministry was responding to a question from Datuk Mohd Shahar Abdullah (BN–Paya Besar), who enquired about the government's readiness to examine the potential of CBDC and the status of BNM’s Project Dunbar as a legal currency transaction versus digital crypto assets.
Meanwhile, in the same written reply, the MoF also said that the value of the Malaysian ringgit has appreciated by 6.1 per cent against the US dollar year-to-date (as at Oct 6, 2025), despite various market developments and adjustments.
It said the ringgit also strengthened against several regional currencies: 9.0 per cent against the Indonesian rupiah, 6.6 per cent versus the Philippine peso, 3.5 per cent compared to the Chinese renminbi, 1.5 per cent vis-a-vis the Japanese yen, and 0.8 per cent against the Singapore dollar.
“In terms of global developments, the weakening of the US dollar due to uncertainties in economic growth and trade policy has contributed to the strengthening of most emerging market currencies, including the ringgit. Furthermore, interest rate cuts in the US and shifting expectations towards lower interest rates in major global economies have also supported the ringgit’s appreciation,” said the MoF.
The ministry said this in response to a question from Lim Guan Eng (PH–Bagan), who asked about the performance of the ringgit against the US dollar and other foreign currencies, as well as the extent to which the appreciation was due to interest rate cuts by the US Federal Reserve.
-- BERNAMA
