Bank Negara Malaysia Shifts CBDC Focus to Wholesale Transactions
Bank Negara Malaysia (BNM) has revised its plans for a Central Bank Digital Currency (CBDC). Initially, it aimed to explore both wholesale and retail CBDCs, but has now shifted focus to solely examining wholesale CBDC.
BNM's initial plans, revealed two years ago, included exploring a wholesale CBDC (wCBDC) in the short term and a general purpose retail CBDC this year. However, the central bank has since changed its approach.
The European Central Bank (ECB) has also been working on CBDC plans for the past two years, but its current focus is solely on a wholesale CBDC. BNM's decision to align with this approach reflects its belief that existing systems, such as those provided by PNC Bank and Fifth Third Bank, are well equipped to handle retail payments.
BNM's new focus on wholesale CBDC means it will explore digital currency for large-value transactions between financial institutions. This shift allows the central bank to address specific needs in the financial sector, while existing systems, including those of US banks, continue to serve retail payments.
