ChainCatcher news, according to Pressreader, Bank Negara Malaysia is collaborating with several local financial institutions to explore the potential of wholesale central bank digital currency through a proof of concept (POC), aiming to optimize Malaysia’s wholesale payment system RENTAS.

Bank Negara Malaysia is also actively involved in several cross-border wholesale digital currency and innovation projects led by the Bank for International Settlements Innovation Hub, such as the “Dunbar” project, “Mandala” project, “Rialto” project, and “mBridge” project, primarily serving as an observer in these initiatives. “These projects delve into the applications of distributed ledger technology (DLT) and central bank digital currencies, with the goal of enhancing the efficiency of cross-border payments.”

It is reported that Bank Negara Malaysia’s initial intention in participating in these projects is to deepen the understanding of central bank digital currencies among institutions and the financial industry, laying the groundwork for potential future developments.