Malaysia’s central bank, Bank Negara Malaysia (BNM), has unveiled a new Digital Asset Innovation Hub aimed at fostering financial innovation within a tightly regulated framework.
The announcement came during the Sasana Symposium 2025, a two-day gathering at BNM’s Sasana Kijang headquarters, attended by government officials, industry leaders, and academics.
The initiative provides a controlled environment for financial institutions and tech companies to trial digital asset solutions, allowing regulators to refine security measures and regulatory guidelines as new technologies are tested.
This model resembles the regulatory sandboxes found in other financial hubs, balancing the push for innovation with the need for oversight.
The hub’s initial focus will be on two key areas: programmable money and a stablecoin backed by the Malaysian ringgit.
While specific technical details and timelines remain under wraps, the move signals Malaysia’s intention to join the growing number of nations exploring central bank digital currencies (CBDCs) and regulated stablecoins.
This approach reflects a careful strategy, seeking to develop digital finance capabilities that fit the country’s unique economic context while maintaining stability and consumer protection.
BNM Governor Dato’ Seri Abdul Rasheed Ghaffour described the digital asset initiative as part of a wider structural reform agenda.
He told the symposium
“Structural reforms are not something one institution or individual can tackle alone. It requires a whole-of-nation approach.”
The event featured discussions on a range of topics from inflation and social protection to digital assets and climate finance, highlighting the central bank’s effort to address Malaysia’s economic challenges comprehensively.
The launch also coincided with the introduction of the Climate Finance Innovation Lab, spearheaded by the Joint Committee on Climate Change, showing BNM’s commitment to integrating environmental concerns with financial innovation.
The timing of the hub’s launch aligns with Malaysia’s upcoming ASEAN Chairmanship in 2025.
The government aims to position the country as a leader in regional digital finance discussions, including cross-border payments and local currency transactions.
A ringgit-backed stablecoin could enhance Malaysia’s ability to conduct international trade using its own currency, reducing dependence on traditional correspondent banking and the US dollar, which aligns with broader global trends towards de-dollarisation.
During the symposium, BNM showcased initiatives to support ASEAN’s climate goals and improve instant payment connectivity through an immersive ASEAN Tunnel exhibition.
This demonstrates the central bank’s vision to use digital innovation to boost regional economic integration.
The symposium also highlighted microentrepreneurs benefiting from the iTEKAD social finance programme, with 14 vendors showcasing their products at the Bazar iTEKAD event.
The programme provides blended financing and training to help small businesses grow, illustrating a commitment to inclusive growth alongside digital transformation.
Governor Abdul Rasheed Ghaffour emphasised the practical impact of these reforms, stating,
“Reforms and policies are not mere ideas on paper.They can make a real difference in the everyday lives of Malaysians.”
By combining digital asset innovation with wider economic and social reforms, Malaysia is taking a measured approach that encourages experimentation while aiming to build a stronger, more resilient financial system.
Bitcoin surged past $64,000 on Monday, with analysts combining technical indicators such as RSI, order book liquidity and moving averages to suggest that a breakout above $65,000 is increasingly likely.
AlexThe Liberal Party of Australia has launched the country's first fully AI-generated political advertisement, featuring a deepfake of ACT Chief Minister Andrew Barr, ahead of the 2024 federal election. This raises concerns about the implications of AI in politics, prompting calls for urgent regulation to protect the electoral process.
JoyChinese stocks opened higher on Monday and Bitcoin surged above $64,000 as investors assessed the potential impact of economic stimulus measures announced by the Ministry of Finance over the weekend.
MiyukiEthereum founder Vitalik Buterin sold a large number of meme coins over the weekend and cashed in $2.23 million. He previously stated that all tokens sent to him without permission would be sold and donated to charity, and the market speculated that this would be the case this time as well.
WeiliangNTT Communications and SoftBank are using AI technology to protect call center employees in Japan from increasing abusive customer behavior, known as "kasu-hara." These innovations aim to reduce the emotional stress on workers and improve customer interactions by monitoring calls and softening the tone of complaints.
WeatherlyCambridge University’s Museum of Zoology is launching an innovative project that allows visitors to interact with AI-generated voices of extinct and living animals to learn about their lives and the biodiversity crisis. The exhibits will provide personalized conversations in over 20 languages, aiming to foster empathy and raise awareness about environmental conservation.
WeatherlyThe rise of generative AI is pushing software engineers to acquire new skills, such as prompt engineering, to remain relevant in their roles. Despite fears of AI replacing jobs, experts emphasise that it will create new opportunities and enhance productivity in the software development field.
AnaisAn on-chain investigator has tied YouTuber MrBeast to over $10 million in profits from token launches seen as possible pump-and-dump schemes. While no laws were broken, the situation raises ethical concerns in the crypto community. Is MrBeast knowingly involved, or an unwitting victim?
CatherineGoogle is turning to nuclear energy to meet the growing power needs of its AI data centres, partnering with Kairos Power to use small modular reactors. This move helps secure a reliable and clean energy source to support the tech giant's AI growth.
JoyIn 2013, James Howells mistakenly discarded a hard drive with Bitcoin mined in 2009, now worth over $520 million. He's suing Newport Council for permission to search the landfill. Will he recover his fortune, or will it remain lost?
Kikyo