Malaysia to Limit Cash Transactions in 2020

[Betwrong]

~The article says 8k a month is the average, but I can tell you that my own family of 5 spends about 3k. And the average wage in my state for a family of 2 earners is 3k.

This is interesting because I too think 8k MYR for one family per month is an exaggerated amount for a country like Malaysia. It's almost 2,000 USD, and I thought an average Malaysian family lives on much less than that. But what is literally said there is "An ordinary household in Malaysia is said to spend around 8,000 Malaysian Ringgit (RM) per month", and now I think, maybe "household" doesn't mean "family"? I've never been to Malaysia, and I have little knowledge about how people live there. Is it possible that by "household" they mean 2-3 families living under the same roof?

[magneto]

Probably just first in a series of countries to do so.

Australia is trying to limit cash use as well, with more and more limits imposed on cash deposits and cash based transactions. This severely limits the utility of cash, which seems like a good thing on the surface, but really takes away some of the fungibility and reliability of the payment system.

This could be an area where BTC could fill in once again, re-creating the fungibility that cash once had.

[clickerz]

My bank actually called me the same day those implementations came out, probably because there were 2 transactions in the past years that well exceeded those amounts. It was actually for work, I was helping out my employer branch to transfer money, I was the only non-sanctioned nationality in the country at the time and strangely enough, it all went through. I did need to clarify then, and they were reluctantly satisfied but my point is this cash limit applies to electronic and wire transfers (which is what I used) as well.

I have to say though, the 25k MYR limit is really quite huge. The article says 8k a month is the average, but I can tell you that my own family of 5 spends about 3k. And the average wage in my state for a family of 2 earners is 3k.

So really, this is definitely targeting high-volume businesses and individuals, and this country has a long history of helping launderers =p

I think the ruling is fine, and if people have an issue, well, Bitcoin.

This is interesting, but I think Malaysia wants to curb corruption, money laundering, and other financial fraud and illegal activities. Also, I think they may have exceptions for big corporations and businesses as this limit may jeopardize their operations. @buwaytress you are correct, bitcoin will have a great role for this.

[shield132]

I have one question to people in their government, are they sane? Where's the same?
Government has problems inside, not as good policemen as needed and for various reasons, number of illegal activities are increased and in order to fix this, they limit usage of cash? Hey, what about elder people who don't use visa/master cards, can't do bank transactions or don't have access to computer/internet? Because fool people can't fix something, they found another way- fix things by limiting people who have no duty of it.
Personally I don't find this action fair, am I doing something illegal by buying foods in supermarket via cash? Why it has to be limited?

[Betwrong]

I have one question to people in their government, are they sane? Where's the same?
Government has problems inside, not as good policemen as needed and for various reasons, number of illegal activities are increased and in order to fix this, they limit usage of cash? Hey, what about elder people who don't use visa/master cards, can't do bank transactions or don't have access to computer/internet? Because fool people can't fix something, they found another way- fix things by limiting people who have no duty of it.
Personally I don't find this action fair, am I doing something illegal by buying foods in supermarket via cash? Why it has to be limited?

It's not about buying foods in supermarket. If the restriction will be implemented, people who buy food, clothes and various items for their daily needs with cash won't be affected at all, because the proposed limit for a single transaction is 25,000 MYR(almost $6,000 USD). Regular people rarely, if ever, buy something with that amount of cash at once.

[sapnu]

I have one question to people in their government, are they sane? Where's the same?
Government has problems inside, not as good policemen as needed and for various reasons, number of illegal activities are increased and in order to fix this, they limit usage of cash? Hey, what about elder people who don't use visa/master cards, can't do bank transactions or don't have access to computer/internet? Because fool people can't fix something, they found another way- fix things by limiting people who have no duty of it.
Personally I don't find this action fair, am I doing something illegal by buying foods in supermarket via cash? Why it has to be limited?

It's not about buying foods in supermarket. If the restriction will be implemented, people who buy food, clothes and various items for their daily needs with cash won't be affected at all, because the proposed limit for a single transaction is 25,000 MYR(almost $6,000 USD). Regular people rarely, if ever, buy something with that amount of cash at once.

Maybe it has a good side in which they are able to use cryptocurrency more, they are using that for different purposes like they can use it as payment method, knowing that cryptocurrency is good at that, having fastest transaction than fiat. And also it is way secure than fiat, I believe that it has a good impact on the community especially in the crypto community since more buyers of tokens are coming. But the government should have a better solution to that, because how do they buy their need if they dont have any way of transaction like ATM's.

[X-ray]

Probably just first in a series of countries to do so.

Australia is trying to limit cash use as well, with more and more limits imposed on cash deposits and cash based transactions. This severely limits the utility of cash, which seems like a good thing on the surface, but really takes away some of the fungibility and reliability of the payment system.

This could be an area where BTC could fill in once again, re-creating the fungibility that cash once had.

Wait until they limit something that are in their way to take over the control to all people's money. this time they are limitting the cash transaction tomorrow they will limit the use of crypto or even ban it because it opposes the initial idea of why they are limiting cash which is to force people into using the banking or even digital system. Government that always limit about something like this is no good at all and people shoud have more right to what they could do. it's their money after all not the government's even if the limit is big enough but there are some people who did that transaction surpassing the limit.

[Xxmodded]

Probably just first in a series of countries to do so.

Australia is trying to limit cash use as well, with more and more limits imposed on cash deposits and cash based transactions. This severely limits the utility of cash, which seems like a good thing on the surface, but really takes away some of the fungibility and reliability of the payment system.

This could be an area where BTC could fill in once again, re-creating the fungibility that cash once had.

Wait until they limit something that are in their way to take over the control to all people's money. this time they are limitting the cash transaction tomorrow they will limit the use of crypto or even ban it because it opposes the initial idea of why they are limiting cash which is to force people into using the banking or even digital system. Government that always limit about something like this is no good at all and people shoud have more right to what they could do. it's their money after all not the government's even if the limit is big enough but there are some people who did that transaction surpassing the limit.

When have power and many people agree for limit cash transaction maybe at the future many thing can be happen in Malaysia like limit digital transaction like bitcoin and altcoin, I think not good way to limit cash transaction because many people buy and sell something to get much profit, if cash limit transaction have deal many market will gone because some person have reached their transaction before.

[drachman]

The country is set to implement an unprecedented restriction on the use of cash.^[1] This is doubtless the first time that a country is to implement such bizarre measure to counter the abuse of cash. Somehow, this national policy is implying that cash, at least within the country, is being abused for various illegal activities.

While some business communities are against such drastic measure as it would certainly affect their day to day operation, an idea pops out that they could actually circumvent this policy by adopting the use of Bitcoin and other cryptocurrencies.^[2] An ordinary household in Malaysia is said to spend around 8,000 Malaysian Ringgit (RM) per month, way below the 25,000 RM limit. But still, a lot are clamoring to increase the limit as the current proposed limit is way to low.

Would you care to share your thoughts on this? Will this really be a window for significant growth of Bitcoin or crypto adoption in this Southeast Asian country?

Sources:
[1]

• https://www.channelnewsasia.com/news/asia/malaysia-to-impose-cash-transaction-limit-of-rm25-000-in-2020-12072710
• https://www.thestar.com.my/news/nation/2019/11/08/business-community-says-no-to-rm25k-limit
• https://www.thestar.com.my/business/business-news/2019/11/07/malaysia-to-impose-cash-transaction-limit-of-rm25000-next-year

[2] https://bitcoinist.com/bitcoin-usage-may-spike-following-cash-restrictions-in-malaysia/

This has been a tendency for governments all over the world for decades, they want to eliminate cash and in order to do so they are going to use every excuse that they can find and they have decided to try to scare people away by saying that only criminals use something like cash, something which we know it's not true, fortunately we do not we need to look for a solution for this issue since it already exist and its name is bitcoin, let's see if they can find a way to limit digital cash.

[NathanJB]

The country is set to implement an unprecedented restriction on the use of cash.^[1] This is doubtless the first time that a country is to implement such bizarre measure to counter the abuse of cash. Somehow, this national policy is implying that cash, at least within the country, is being abused for various illegal activities.

While some business communities are against such drastic measure as it would certainly affect their day to day operation, an idea pops out that they could actually circumvent this policy by adopting the use of Bitcoin and other cryptocurrencies.^[2] An ordinary household in Malaysia is said to spend around 8,000 Malaysian Ringgit (RM) per month, way below the 25,000 RM limit. But still, a lot are clamoring to increase the limit as the current proposed limit is way to low.

Would you care to share your thoughts on this? Will this really be a window for significant growth of Bitcoin or crypto adoption in this Southeast Asian country?

Sources:
[1]

• https://www.channelnewsasia.com/news/asia/malaysia-to-impose-cash-transaction-limit-of-rm25-000-in-2020-12072710
• https://www.thestar.com.my/news/nation/2019/11/08/business-community-says-no-to-rm25k-limit
• https://www.thestar.com.my/business/business-news/2019/11/07/malaysia-to-impose-cash-transaction-limit-of-rm25000-next-year

[2] https://bitcoinist.com/bitcoin-usage-may-spike-following-cash-restrictions-in-malaysia/

This has been a tendency for governments all over the world for decades, they want to eliminate cash and in order to do so they are going to use every excuse that they can find and they have decided to try to scare people away by saying that only criminals use something like cash, something which we know it's not true, fortunately we do not we need to look for a solution for this issue since it already exist and its name is bitcoin, let's see if they can find a way to limit digital cash.

I guess this is all for the control of the use of cash. You and I know that cash can be abused. In fact, it is already used by many criminals. Drug lords, terrorists, and other huge syndicates are mostly using cash. This is actually detrimental to the economy of the country in one way or another because by limiting the use of cash, the people will be limited in their spending and expenses. That affects the economy. This might really be another reason for the people in this country to use crypto instead.

[Sithara007]

I guess this is all for the control of the use of cash. You and I know that cash can be abused. In fact, it is already used by many criminals. Drug lords, terrorists, and other huge syndicates are mostly using cash. This is actually detrimental to the economy of the country in one way or another because by limiting the use of cash, the people will be limited in their spending and expenses. That affects the economy. This might really be another reason for the people in this country to use crypto instead.

WTF man? Do you want to make physical cash illegal just because a few criminals use it? And do you really think that criminal activities can be prevented if we replace physical cash with digital versions (either digital versions of fiat, or cryptocurrencies)? IMO, it will just have the opposite effect, as most of the crime syndicates have now found methods to launder cash using these digital payment methods. The real reason for this move is not to prevent money laundering and crime, but to spy on the citizens to find out from where their wealth is coming from, so that they could be taxed more efficiently.

[Shasha80]

I don't really know the real reason for the Malaysian government to limit cash transactions in 2020. I'm just guessing the possibility
it is to introduce to the public an alternative payment through digital currency, so the government wants the citizens follow the
development of technology in the financial sector. And the next reason might be to reduce illegal transaction activity, such as terrorists,
corruption, money laundering, and drug smuggling. What we know is that many illegal activities use cash. Malaysian government policies
related to cash transaction limits can make cryptocurrency a solution used by Malaysians citizen to make transactions.

[onrise]

Probably just first in a series of countries to do so.

Australia is trying to limit cash use as well, with more and more limits imposed on cash deposits and cash based transactions. This severely limits the utility of cash, which seems like a good thing on the surface, but really takes away some of the fungibility and reliability of the payment system.

This could be an area where BTC could fill in once again, re-creating the fungibility that cash once had.

I think the future belongs to the digital transaction and slowly the cash transaction would be reduced and this crypto currency would play a vital roles in doing so and thus this market will widen and the price will continue to rise in coming time .

[Betwrong]

I guess this is all for the control of the use of cash. You and I know that cash can be abused. In fact, it is already used by many criminals. Drug lords, terrorists, and other huge syndicates are mostly using cash. This is actually detrimental to the economy of the country in one way or another because by limiting the use of cash, the people will be limited in their spending and expenses. That affects the economy. This might really be another reason for the people in this country to use crypto instead.

WTF man? Do you want to make physical cash illegal just because a few criminals use it? And do you really think that criminal activities can be prevented if we replace physical cash with digital versions (either digital versions of fiat, or cryptocurrencies)? IMO, it will just have the opposite effect, as most of the crime syndicates have now found methods to launder cash using these digital payment methods. The real reason for this move is not to prevent money laundering and crime, but to spy on the citizens to find out from where their wealth is coming from, so that they could be taxed more efficiently.

Yes, but this is about not just citizens, but about very wealthy ones, those who can afford spending over $6,000 on goods or services at once. Maybe it would be not that bad if such people could be taxed more efficiently. But that's of course if the money from taxes wouldn't be stolen by corrupt government officials, which is frequently the case.

[veleten]

this is a weird decision if I ever seen one
I would understand limiting derivatives and electronic money but trying to limit cash sounds like a start of the Orwell's anti utopia
in a world without cash you can be simply turned off and won't be able to pay for anything
for example , the government thinks you are  a threat and you find your cards blocked , your accounts frozen
and you won't be able to buy food or pay for the bare necessities you need
I hope they do not go through with this ridiculous plan

[drachman]

I guess this is all for the control of the use of cash. You and I know that cash can be abused. In fact, it is already used by many criminals. Drug lords, terrorists, and other huge syndicates are mostly using cash. This is actually detrimental to the economy of the country in one way or another because by limiting the use of cash, the people will be limited in their spending and expenses. That affects the economy. This might really be another reason for the people in this country to use crypto instead.

WTF man? Do you want to make physical cash illegal just because a few criminals use it? And do you really think that criminal activities can be prevented if we replace physical cash with digital versions (either digital versions of fiat, or cryptocurrencies)? IMO, it will just have the opposite effect, as most of the crime syndicates have now found methods to launder cash using these digital payment methods. The real reason for this move is not to prevent money laundering and crime, but to spy on the citizens to find out from where their wealth is coming from, so that they could be taxed more efficiently.

Agreed, this is about monitoring the citizens and what they are doing with their money, governments and private institutions are getting more invasive with their monitoring and we should expect that this gets worse as the century advances and the only way to avoid a world in which everything you do is monitored is to begin to resist it, and adopting bitcoin is a great step since even if you are doing nothing wrong we should expect to retain some level of privacy about our purchases.

[fiulpro]

Even if the cash transactions are put on hold there are other ways by which people can simply speaking .. pay whatever they want and this way I think cryptocurrencies will come handy ...
Because I don't know how many people will be open for the payment in terms of other traditional methods , and I think the government will leave the bank cards open for transactions made after the cash limit have reached .
They are simply trying to reduce the black money in the market and it might work if implemented successfully with certain pre defined laws.

[ilovealtcoins]

It seems that they are trying to control cash flow, limiting cash transactions will make transactions more transparent.  This makes the anonymity of monetary transactions lost.  Cashless transactions will reduce costs such as printing costs, transportation costs and cash flow losses.
It seems that Indonesia is learning from China and other countries in the region about making cashless transactions.

[X-ray]

Probably just first in a series of countries to do so.

Australia is trying to limit cash use as well, with more and more limits imposed on cash deposits and cash based transactions. This severely limits the utility of cash, which seems like a good thing on the surface, but really takes away some of the fungibility and reliability of the payment system.

This could be an area where BTC could fill in once again, re-creating the fungibility that cash once had.

Guess these paper wallet aren't deemed to be worth it anymore. If it's for the sake of forcing people into using digital curreny or payment method I actually fine with that and also could actually reduce the logging but it seems people aren't really ready for it though and are worried with the fact that the government could take down the account of certain person and possibly deducting money directly from their digital account.

[coin-investor]

This is really weird and unimaginable I'm glad that they are not thinking of doing this here in our country, this is the first time I read that, what could be the consequences of this, but it's punishing the people because if one family will be building a house and yet you cannot transact with cash how they are going to complete that, or they want to promote the use of cards, I don't know where will this lead and how will their people cope with this.