Kuala lumpur: Bank Negara Malaysia (BNM) is on track to finalize its proof-of-concept for a domestic wholesale central bank digital currency (CBDC) by the end of this year. The Ministry of Finance (MoF) has indicated that this initiative is designed to explore the potential of CBDC within a controlled environment.
According to BERNAMA News Agency, the objective is to bolster the country’s wholesale payment infrastructure, particularly the Real-time Electronic Transfer of Funds and Securities System (RENTAS). This endeavor aims to enhance the knowledge and capabilities of BNM and the financial sector concerning the potential applications of Distributed Ledger Technology (DLT) and CBDC.
The ministry highlighted that this initiative is crucial in preparing the country for the potential issuance of a CBDC in the future. Furthermore, BNM is actively participating in cross-border wholesale CBDC innovation projects led by the Bank for International Settlements Innovation Hub, alongside several other central banks.
Among the projects mentioned are Project Dunbar, Project Mandala, and Project Rialto. These projects investigate the use of multi-CBDCs to enable cross-border wholesale payments that are more efficient, faster, and secure. The MoF addressed this in response to a query from Datuk Mohd Shahar Abdullah (BN-Paya Besar) regarding the government’s exploration of CBDC potential and the status of BNM’s Project Dunbar as a legal currency transaction compared to digital crypto assets.
In the same written reply, the MoF reported that the Malaysian ringgit has appreciated by 6.1 percent against the US dollar year-to-date, as of October 6, 2025, despite various market developments and adjustments. The ringgit has also gained strength against several regional currencies, appreciating 9.0 percent against the Indonesian rupiah, 6.6 percent versus the Philippine peso, 3.5 percent compared to the Chinese renminbi, 1.5 percent vis-a-vis the Japanese yen, and 0.8 percent against the Singapore dollar.
The MoF noted that 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. Additionally, interest rate cuts in the US and shifting expectations toward lower interest rates in major global economies have supported the ringgit’s appreciation. This was stated in response to a question from Lim Guan Eng (PH-Bagan) about the ringgit’s performance against the US dollar and other foreign currencies, and the role of US Federal Reserve interest rate cuts in the currency’s appreciation.