Malaysia's central bank announces stablecoin and tokenization sandbox

The pilot programs explore wholesale settlement between institutions and real-world use cases, along with stablecoin development and tokenized bank deposits.

Bank Negara Malaysia (BNM), the country’s central bank, said on Wednesday that its Digital Asset Innovation Hub (DAIH) is piloting three regulatory sandbox programs to research and develop stablecoins and tokenized bank deposits.

BNM’s initiatives center around using ringgit stablecoins, the fiat currency of Malaysia, for cross-border settlement and developing tokenized real-world assets (RWAs), according to the announcement.

The pilot also aims to test tokenized bank deposits, with all research potentially applicable to the development of a wholesale central bank digital currency (CBDC), onchain fiat currency issued and managed directly by a central bank.

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