A central bank governor from Malaysia revealed that the country is planning to impose a limit of $6,000 on all cash transactions in the country from 2020. However, the reason cited behind the capping is that of putting an end to the use of cash in criminal activities and it has been said that regulated financial institutions and other institutions making the transactions to humanitarian ends would be kept outside the purview of the limiting law.
Average Monthly Household Expenditure Three Times Less than the Limit
The deputy governor who made the statement, Abdul Rasheed, works at Bank Negara Malaysia. Mr. Rasheed maintains that the limit would apply to every transaction which involves physical cash, including the payments for goods and services. Other than that, the $6,000 limit (approximately 25,000 Malaysian ringgits) would also be applicable in the cases of transactions like donations between business entities.
Mr. Rasheed, who is also a chairman at the National Coordination Committee, claimed that the average monthly household expenditure in Malaysia was $1,900 (approximately 8,000 Malaysian ringgits). He further stated that the fines imposed on people who violate the transaction limit would not be more than three times the amount involved with the offense.
Mr. Rasheed further highlighted that the transaction limitation in the country was crucial since cash can be exposed to a number of illegal activities. He added that public feedback is welcomed on the matter.
Not a New Move
The recent developments in Malaysia are not at all anything new. Countries have imposed limits on transactions several times in the past, the most recent example being Australia. Probably this is the reason why cryptocurrencies are being hailed as the future of money: providing more financial freedom than the states, whose efforts are always in the direction of total control.