Digital Assets Exchanges To Become An Essential Part Of Malaysia 5.0

By citiesabc resources - Aug 19, 2020

Malaysia Digital Economy Corporation (“MDEC”) is tasked with organising and leading Malaysia’s Digital Economy forward. MDEC has recently announced Malaysia 5.0, which can contribute to a more sustainable and circular economy by building this national digital ecosystem with a unified alliance of stakeholders both within government and across private enterprise to enable business and societal migration to the digital age.

By Rais Hussin, Chairman of Malaysia Digital Economy Corporation (“MDEC”)

Malaysia 5.0 will address financial inclusion, access, performance and growth through the 4th Industrial Revolution (“4IR”) tools such as Fintech, Blockchain and AI. Digital network hubs will emerge as core components of every country’s digital infrastructure, facilitating the interoperability of goods and services that flow through them with interconnectivity between such hubs.

Digital asset exchanges will play an important role offering participants the ability to monetize their activity over this digital infrastructure, essentially serving as the capital markets for Malaysia 5.0.

Digital exchanges offering dynamic asset conversion facilities will bridge the current legacy marketplaces with the new e-marketplaces and allow them to coexist for the foreseeable future.

The issue has been the inability to deploy capital and move assets seamlessly between legacy platforms. This is a historic problem for exchanges which has persisted since their inception as floor-based marketplaces and continued as they moved to electronic trading. They remained standalone pools of liquidity making interoperability between them difficult and expensive and only possible via multiple intermediaries.

The advent of digital exchanges change will offer necessary redundancies in capital markets, as well as providing enhanced liquidity and transparency. Legacy exchanges work well for blue-chip companies, in the same way banks function as efficient lenders for large MNC’s. But for start ups and SME’s these options carry massive costs and overhead expenses.

The future of exchanges will combine digital and traditional assets in ways that change the decades-old exchange model. The impact of such changes could be dramatic, especially for startups and SME’s. Tokenisation and blockchain-based solutions can revolutionise the ability for smaller companies to raise capital, and make the process more streamlined and cost-effective.

The role that digital change agents like MDEC can play will be to support and manage such transformational shifts. The need for robust institutional-grade digital asset exchanges in trusted environments is greater than ever. This is already starting to happen in regulated environments as opposed to the ‘crypto wild west’.

Digital asset exchanges represent a huge opportunity globally – the ASEAN region included. The market for digital assets has evolved substantially as security tokens have started to gain more traction with institutional investors.  A survey conducted by the World Economic Forum, predicted that 10% of GDP will be stored on blockchain technology by 2027, equivalent to US$24 trillion of financial assets.

Malaysia 5.0 is a golden opportunity to put the country into the heart of Digital ASEAN. The potential for early adopter countries is to take the lead is further facilitated as round-the-clock transactions become easier, cheaper and more secure with a global reach.

Jonathan Sims – CPO ENGIE/EQUANS – Carbon Neutrality, ESG, Change Management, Procurement & Businesses Challenges

Jul 30, 2021

NFT Studio and Marketplace INFLUXO Launches with a Collection Featuring Two-Time FIFA World Player of the Year, Ronaldinho

Jul 29, 2021

Tradeling Launches Fulfilment Centre in Dubai CommerCity to Further Expand its Operational Capabilities

Jul 28, 2021

From the Oscars to Bollywood: Dinis Guarda Interviews The Multitalented Amrita Sen On Her Career In Music, Film and Design

Jul 27, 2021

The COVID-19 Vaccination Effort: The Challenges of Managing a Partially-Vaccinated Workforce

Jul 26, 2021

Interview with LaMondre Pough, CEO of Billion Strong, Mentor, Recognized Leader for the Community of People with Disabilities

Jul 23, 2021

Interview with Richard Haigh, Managing Director at Brand Finance, BA from University of Oxford, Lecturer – “Bridging The Gap Between Marketing And Finance”

Jul 21, 2021

UKIIC And openbusinesscouncil Partner To Promote New Knowledge, Technologies And Innovation In The Industry

Jul 20, 2021

Prof Xiaolan Fu, Director of the Technology and Management Centre for Development TMCD – University of Oxford, Founder OxValue.AI

Jul 16, 2021

Digital Artist Andrea Bonaceto And Sophia the Robot To Drop An NFT Collection Inspired By Space Exploration

Jul 14, 2021