Fahmi Fadzil, the PKP communication director, has asked the Malaysia government to exercise some caution while launching the nation’s stablecoin. Fahmi said that cryptocurrencies were volatile and unpredictable. As such, guidelines and regulations need to be put in place. The Bank Negara Malaysia (BNM) is responsible for setting these guidelines.
Harapan is the name of the stablecoin, and its ICO is ongoing. The purpose of the coin is to “evoke opposing sentiments against the current government.” Therefore, this is a political fundraising platform that uses cryptocurrency and Blockchain. The proposed funding for the coin is $120 million, but as at press time, only $1062 has been raised.
Fahmi Fadzil Questions The Purpose of a Stablecoin
Fahmi Fadzil did not welcome the idea of a stablecoin from the onset and asked what was going to be its purpose. However, he has made it known that he will only agree with the coin’s launch when proper political financing has been put in place.
Fahmi had this to say during a press conference on Wednesday;
The anonymous nature of cryptocurrency may open us up to a number of issues and we need to wait for guidelines from Bank Negara Malaysia (BNM) in regard of cryptocurrency
Alternatively, Malaysia’s Prime Minister, Dr. Mahathir Mohamad is still optimistic about the coin’s development. He had mentioned that although its development is yet to be approved, he would continue to propose the project. Accordingly, the BNM and the Prime Minister will review the paperwork for the stablecoin.
More Countries Are Adopting The Use of a Stablecoin
Like Malaysia, Iran, Russia, and the Marshall Islands are making plans to release their stable coin. In the case of Iran, their national currency, Rial will back the coin. The coin is currently awaiting the approval of the Central Bank of Iran (CBI). Upon its approval, it will be issued to commercial banks for internal and interbank transactions.
The Marshall Islands, on the other hand, their proposed Sovereign coin was under the scrutiny of some senators of the country. Nevertheless, the President, Hilda Heine will still be able to proceed with the coin’s project. This can be attributed to Monday’s vote of no confidence that led to the continuation of the coin’s project.
It does not come as a surprise that more countries are trying to develop their stablecoin. These coins are known to be less volatile than other cryptocurrencies such as Bitcoin and Ethereum. In recent times, they were able to defy the bearish market and still see a slight increment in price. For instance, TrueUSD was trading at $1.07 and Paxos at $1.05 on Binance when Bitcoin went as low as $5,500.