In a statement today, the Centre for Market Education (CME) welcomed his remarks, but urged caution against a “hasty transition that could undermine the principles of currency diversity and individual privacy”.

It said BNM should not serve as an active player in the future of digital finance, but rather, should welcome private innovation.

“There already exists a digital ringgit. Malaysia does not need another digital ringgit,” said the group.

On Tuesday, Prime Minister Anwar Ibrahim said the government is considering drafting a policy on digital finance that could see Malaysia recognise the use of cryptocurrencies and the existence of blockchain technology.

He said he had held discussions with the UAE government and cryptocurrency and blockchain giant Binance to explore the idea.

CME made several recommendations in the interest of protecting currency diversity, including the adoption of Bitcoin, asset-backed “stablecoins” and a rejection of taxes on alternative currencies.

It also urged against phasing out the use of cash in the financial system, saying the government can and “should embrace private sector innovations in digital finance, while still fully meeting the demand for cash”.

CME cited American journalist Robert Neuwirth’s book Stealth of Nations, arguing that cash is a vital tool for the world’s poor.

“Neuwirth’s overarching point was that many who operate within the informal economy (and outside of the banking system) do so either because they prefer to or because the banks don’t want to do business with them.

“Thus, cash allows them to live with some level of dignity,” it said.

CME suggested that the government increase the highest denomination bill from RM100 to RM200 or RM500.

“The largest bank note at present is of low value. It should be recognised that cash is still an important tool for the world’s poor,” it said.