Malaysia’s Central bank joined the CBDC project.

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Malaysia's central bank has completed a CBDC proof-of-concept with three other countries and may consider building its own blockchain-based cross-border payment system.

Malaysia has joined a growing list of countries looking at the benefits of researching and developing a central bank digital currency (CBDC).

While a decision on how to proceed with a CBDC has yet to be made, Malaysia's central bank, Bank Negara Malaysia, told Bloomberg on Monday that it has concentrated study on a CBDC "through proof-of-concept and experimentation to increase our technological and regulatory capabilities."

The ostensible purpose for the current study endeavor was to guarantee that it was ready to establish a CBDC program "should the need to issue CBDC emerge in the future," according to the statement.

According to a joint release, Malaysia cooperated with South Africa, Australia, and Southeast Asian neighbor Singapore to build Project Dunbar, a proof-of-concept CBDC pilot.

Project Dunbar demonstrated various possibilities of blockchain-based cross-border transfers using the Corda and Quorum blockchain platforms from r3 and ConsenSys, respectively. Its main goal was to show how blockchain technology may "remove the need for intermediaries and reduce transaction time and cost."

A growing number of countries are looking into how a CBDC program might work in their jurisdiction. China is by far the most populous country now implementing a CBDC pilot program, nicknamed the digital yuan, with over 20 million downloads since January 4. During the forthcoming Winter Olympics in Beijing next month, China wants to debut the scheme and let overseas visitors to use their passports to access the digital yuan.
 
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