MOSTI sets up task force on blockchain guidelines

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Cryptocurrencies are independent of governments and banks and uses blockchain technology, where encrypted digital coins are created by supercomputers. AFP file photo

 

KUALA LUMPUR: The Ministry of Science, Technology and Innovation (Mosti) has set up a task force to develop guidelines for the application of blockchain technology in Malaysia.

Blockchain is a digital ledger where transactions are recorded chronologically and publicly, and could be effectively used to prevent fraud.

Deputy Minister Datuk Dr Abu Bakar Mohamad Diah said the guidelines would protect the interests of all parties involved in using blockchain technology.

“We will make sure our standards are high and will be applicable throughout the world, just like Malaysia’s halal standards,” he told reporters after launching the International Waqf and Blockchain Forum here today.

He said blockchain offered a lot of potential across various industries, especially in the Islamic finance sector and the country did not want to be left behind in adopting the technology.

“We acknowledge that the technology can provide efficiencies across various industries in Malaysia,” Abu Bakar said.

On the forum, the deputy minister said it was aimed at strengthening the waqf (Islamic endowment) institutions through the adoption of blockchain.

“We hope we can be a champion in shariah compliance blockchain waqf as we did for Islamic finance,” he said.

About 700 participants attended the one-day forum co-organised by Finterra Technologies Sdn Bhd and International Centre for Waqf Research, a division of the International Islamic University Malaysia (IIUM).

Finterra Technologies Founder and Chief Executive Officer Hamid Rashid said the use of blockchain could modernise the management of Islamic institutions, advancing their development as a whole.

“Blockchain technology possesses the potential to facilitate and develop waqf assets on a global scale, while also promoting new economy alternatives to enhance Muslim unity,” he said.

The forum also saw the official signing of five key memoranda of understanding between Finterra Technologies and IIUM, The Haj Committee of Rajasthan, CLMV Holding (Cambodia) Co Ltd, Masyi Foundation, and NanoMalaysia Bhd. – Bernama