He said this was mainly due to the volatility of digital currencies and the risks from hackers, among others, Bloomberg reported.

“Cryptocurrencies like Bitcoin are not suitable for use as a payment instrument due to various limitations.

“This includes price swings and exposure to cyber threats,” he was quoted as saying.

His comments come days after a fellow minister urged Putrajaya to legalise cryptocurrencies such as Bitcoin as a way to build youth participation in the crypto space.

On Monday deputy communications and multimedia minister Zahidi Zainul Abidin proposed to the government that cryptocurrencies such as bitcoin be adopted as legal tender.

In January, Bloomberg reported that Bank Negara Malaysia was assessing the potential benefits of adopting a digital currency.

The country had in September last year joined forces with the Bank for International Settlements, Australia, Singapore and South Africa to test the use of central bank digital currencies for international settlements via a shared platform in a project dubbed Project Dunbar.