The start of the new decade has brought with it some new changes to the world financial markets. After decades of adhering to a single banking and capital transfer system, regions are now experimenting with new technologies such as blockchain and virtual assets.

Malaysia remains one of the financial powerhouses in the South Asian region and recently made news when its states announced their decision to conduct their own tests with blockchain. The latest member of that group was the state of Johor, whose chief minister announced that the government was planning its own digital bank venture.

Chief Minister Datuk Haji Hasni Mohamad took to the public forum of Facebook to reveal that the state government was working with developers to establish its own digital bank. This announcement comes in the

wake of several countries across the globe integrating blockchain technology into its inner workings. According to the government official, a digital bank possesses several advantages that will be useful for the common citizen.

The Chief Minister added that a digital bank under the watchful eye of the government will bear fruits for the economy. Citizens will also have access to a more inclusive financial ecosystem where they will be able to trade with worldwide channels.

Mr Hasni Mohamad urged all the governments to seriously look into the matter and ensure that they do not miss the opportunity that lies in new-age technologies.

Johor becomes the second Malaysia state after Sarawak to initiate a bid for a digital banking license. Sarawak had initially said that they will apply for a license from the Federal Government.

Sarawak Chief Minister Datuk Patinggi Abang Johari Abang Openg had said:

“If possible, the state government would like to obtain the license as we already have our own e-wallet application, the Sarawak Pay. I also hope the Federal Government will consider granting us this license.”

Sarawak Pay, the state’s native application also has its sights on the Chinese as well as the European markets. Abang Johar was confident that there would soon come a day when citizens will be able to use their own currencies to conduct transactions in European nations.