Bank Negara Malaysia (BNM) is expected to complete its domestic wholesale central bank digital currency (CBDC) proof of concept (PoC) by the end of the year, the Ministry of Finance (MOF) said in a written parliamentary response.

According to Bernama, the initiative is being carried out in a controlled environment to assess how a wholesale CBDC could enhance Malaysia’s large-value payment infrastructure.

It also aims to build technical expertise in distributed ledger technology (DLT) among the central bank and financial institutions.

The MOF said the pilot focuses on strengthening the Real-time Electronic Transfer of Funds and Securities System (RENTAS), the country’s core network for high-value interbank transactions.

BNM recently introduced RENTAS+, which enables 24/7 interbank settlements and marks a major milestone for Malaysia’s payment infrastructure. It is the first implementation of its kind in the region.

In addition to its domestic work, BNM is participating in several cross-border CBDC projects under the Bank for International Settlements (BIS) Innovation Hub, including Project Dunbar, Project Mandala, and Project Rialto.

These collaborations aim to explore how interconnected CBDCs can improve the speed, efficiency, and security of cross-border payments.

The MOF provided the update in response to a question from Datuk Mohd Shahar Abdullah (BN–Paya Besar) on Malaysia’s preparedness to explore CBDC adoption and BNM’s involvement in international pilot programmes.

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