PETALING JAYA: Cryptocurrencies have yet to gain traction as a means of payment in Malaysia, but their meteoric rise in popularity and attraction in the past couple of years as retail and institutional investors warm up to the asset class has won over some local businesses.
On the ground, there are a number of local merchants and businesses who have opted to accept digital currencies as a means of payment.
For Sarawak Harvest founder Vincent Chin, the decision to accept bitcoin as payment is spurred by curiosity, given the large number of cryptocurrency holders in Malaysia and dearth of options when it comes to spending it locally.
“There are calls from local crypto enthusiasts calling for more merchants to accept bitcoins and we decided to answer their call,” he told SunBiz. ]
Doing so has made it the first fish store in the country to accept cryptocurrency as payment. However, Chin stated that it has yet to receive any payment in bitcoin since it started offering this option on March 23, 2021.
He elaborated that with the prevalence of e-payment options as almost every Malaysian has a debit card and e-banking access, the cryptocurrency option may offer an advantage over the conventional ones.
Chin mused that the option will probably be useful for those wanting to avoid currency commission and fees in their online transactions overseas.
“Given the fluctuating value of bitcoin, perhaps people think it is more suitable to be kept as an asset, instead of using it in their transactions.”
On the process of onboarding the cryptocurrency payment, he said it is similar to the conventional financial process exchange (FPX) gateway as it involves integrating the application programming interface for it to their backend processes which takes mere minutes.
“Like any other FPX, there is also an electronic know-your-customer process, which requires the submission of their details and registration to verify their details to the payment gateway provider.”
For Asher Looi, who co-founded online pharmacy GoObat, the decision to integrate bitcoin into its payment options is due to his personal beliefs in the digital currency as it is widely accepted as a store of value and it is regulated in most countries.
While it is the first e-commerce pharmacy to accept bitcoin in January this year, he revealed that most transactions are still conducted in fiat currency,
“However, based on our observations, there are an overwhelming number of attempted transactions in cryptocurrency that signifies a healthy and growing awareness towards accepting cryptocurrency as a form of payment in Malaysia.”
As a whole, Looi understands that payments in cryptocurrency is still a niche area and the option to do so is a means to offer customers their preferred payment method.
Given bitcoin’s penchant for fluctuation, he is well aware of the risks regarding bitcoin’s volatility. “However, we also believe in the benefits of bitcoin accumulation in the long run.”
Malaysia is one of the first countries to come up with a regulatory framework on cryptocurrency courtesy of the Securities Commission Malaysia’s digital asset framework.
Nonetheless, Bank Negara Malaysia has stated that bitcoin – cryptocurrency’s flagship coin – is not legal tender in the country and has advised the public to exercise caution with usage of the digital currency.
Other countries around the world share Bank Negara’s view, with the exception of El Salvador, which has approved a proposal to recognise the cryptocurrency as legal tender effective Sept 7.
