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Showing posts with label Blockchain. Show all posts
Showing posts with label Blockchain. Show all posts

Thursday, 21 August 2025

Chronicling evolution of MyKad since 2001: MyKad – Shaping the future of Malaysia’s digital citizens

 

Badrul Hisham showing old identity cards on display at NRD.

rds on display at NRD.

With a single card, individuals can confirm their Malaysian citizenship and seamlessly handle daily tasks such as paying toll, using public transport and buying essentials.

Efficient and convenient – that’s how several users describe their experience using MyKad in daily life.

Some are even updating their MyKad to ensure they have access to the one-off RM100 cash aid given out by the government for the purchase of essentials from Aug 31 in conjunction with National Day.

The identity card of Malaysia’s first prime minister Tunku Abdul Rahman Putra Al-Haj on display at the NRD museum. (Right) Badrul Hisham showing old identity cards.The identity card of Malaysia’s first prime minister Tunku Abdul Rahman Putra Al-Haj on display at the NRD museum. (Right) Badrul Hisham showing old identity cards.

“I don’t need to carry multiple cards in my wallet.

“MyKad is enough,” said trader Roslina Daud, who uses it as an alternative Touch ‘n Go (TNG) payment method for tolls and parking fees.

Private sector worker Maisara Abdul, who uses public transport to commute to work, said the My50 pass integrated with MyKad was convenient as she no longer needed to carry multiple travel passes for different modes of transport.

Sumbangan Asas Rahmah (Sara) aid recipient Rohani Abdullah welcomed the use of MyKad as a payment method for basic necessities, saying it helps reduce the risk of loss or theft.

“With MyKad, Sara recipients like me do not need to queue at banks or automated teller machines (ATMs) to withdraw money.

“We can go directly to the supermarket, pick up essential items and pay using MyKad,” she said.

History of MyKad

MyKad, or Government Multipurpose Identity Card, was introduced in 2001.

New MyKad waiting to be collected at NRD Putrajaya. — FilepicNew MyKad waiting to be collected at NRD Putrajaya. — Filepic

Its goal was to modernise the national identity system, enhance identity security and offer a digital platform that integrates multiple applications into a single card.

Commenting on MyKad’s evolution over more than two decades, National Registration Department (NRD) director-general Badrul Hisham Alias said four versions had been introduced, with the latest launched in 2012.

However, the department is now in the final phase of developing a new MyKad version with enhanced security features.

“The first version used plastic before being upgraded to Polikad 2.0, followed by the current version, which includes additional features like a ‘ghost image’ to improve security.

“Overall, MyKad underwent major changes in 2012 to keep up with technological developments, including design, security features and chip technology,” he said in an interview with Bernama.

Explaining the meaning behind the term “MyKad”, he said “My” referred to Malaysia, while “Kad” meant identification card – its main function being to identify all Malaysian citizens.

“MyKad is the continuation of the country’s identity document (ID) system, which started with paper cards (1948-1960), then blue plastic ID cards (1960-1990), followed by the hibiscus cards (high-quality IDs from 1990-2001) and now, the modern MyKad,” he said.

Although not fully digital, MyKad is designed to support various government transactions and services by integrating digital applications like driving licences, international passport information, basic health data and e-wallets.

“MyKad is widely used in Malaysia’s public healthcare sector, especially for managing medical records, vaccinations and access to public hospital services through identity verification.

The country’s ID system started with paper cards (1948-1960). — Photos: BernamaThe country’s ID system started with paper cards (1948-1960). — Photos: Bernama

“We have also collaborated with agencies like Inland Revenue Board (LHDN) and Employees Provident Fund (EPF) to improve the effectiveness of financial aid delivery,” he said.

Security features

On public concerns about MyKad’s security, especially if it becomes more widely used, Badrul Hisham said the latest card version contained a chip with built-in security features.

“This chip can only be read, written and recorded by NRD’s approved systems.

“While the chip is also used in other industries, its usage in MyKad is tightly controlled,” he explained.

Visible security features include the “ghost image” using laser engraving technology and enhanced smart chip capacity.

While chip card readers are widely available in the market, only NRD-approved devices can access MyKad data.

Badrul Hisham said data sharing with other agencies like LHDN, Road Transport Department (JPJ), police, Health Ministry and others was conducted securely under a “whole-of-government” approach.

While chip card readers are widely available in the market, only NRD-approved devices can access MyKad data. — FilepicWhile chip card readers are widely available in the market, only NRD-approved devices can access MyKad data. — Filepic

He noted that the MyKad chip was equipped with security keys to prevent unauthorised data access or misuse.

“MyKad data can only be accurately accessed using card readers programmed with specific command sets supplied by certified vendors.

“Fingerprint data is encrypted and requires matching keys for access.

“Any information update can only be done at NRD counters through a card replacement process,” he explained.

Badrul Hisham added that data sharing was regulated and must be approved by the NRD director-general.

“This sharing is only allowed for specific purposes, like improving public services, policy development or research – all while ensuring data confidentiality and security,” he said.

Regarding the risk of MyKad forgery or data cloning, he said the card was designed according to international standards and was very difficult to forge.

“Security features exist on multiple layers of the card, with some requiring special tools for verification.

“This makes MyKad, especially the chip, very hard to counterfeit,” he said.

Role in aid

Currently, MyKad is used to distribute financial aid such as Sumbangan Tunai Rahmah (STR), Sara and eKasih.

Sara, for example, involves 5.4 million recipients using aid from the Finance Ministry to purchase items from 14 categories at participating outlets.

On the perception that Sara funds are “loaded” into MyKad, Badrul Hisham clarified that no money was credited to the card itself.

Instead, recipients’ data is accessed through the store’s system during transactions.

“At participating stores, simply present your MyKad.

“Once your ID number is entered, your name will appear and you can shop based on your allocated aid amount,” he said, adding that the system also showed the remaining balance.

“For the RM100 Sara aid announced by Prime Minister Datuk Seri Anwar Ibrahim, recipients only need to present their MyKad to the cashier for identity verification,” he said.

Badrul Hisham stressed that the aid redemption could not be delegated to another individual.

“It is important to remember that MyKad cannot be held or used by others, including family members, in accordance with Regulation 25(1)(e) of the National Registration Regulations 1990,” he said.

Violators may face up to three years in prison, a fine of up to RM20,000, or both.

Badrul Hisham acknowledged that NRD’s initial goal to make MyKad a multi-purpose platform had yet to be fully realised, despite it being in place for 24 years.

Interest from government agencies in using MyKad as a core service delivery platform has also waned.

He said the latest MyKad version could support digital applications for payments, health records and banking, because of its increased chip capacity – 124KB or 128KB compared to the previous 84KB.

“But many agencies have stopped using MyKad in their systems – like JPJ.

“Otherwise, we would not need to carry a physical driver’s licence; MyKad would suffice.”

Physical vs digital

Commenting on MyDigital ID and MyKad, Badrul Hisham said the physical MyKad was governed by the National Registration Act 1959 and would remain relevant despite MyDigital ID implementation.

NRD is committed to ensuring MyKad remains a robust and relevant identity document, aligned with technological progress and public needs, he said.

In the future, he added, MyKad would not only serve as a physical ID, but also as a key to Malaysia’s digital ecosystem, integrating government, financial, healthcare and social services into one secure, efficient and accessible platform.

“Even in other countries with digital systems, physical ID cards still play a role.

“Our goal is to provide fully end-to-end services, including digital services.”

To support this, NRD is in the process of amending the National Registration Act to enable digital applications via MyKad.

Dr Umi Hamidaton Mohd Soffian Lee, a senior lecturer from the Economics and Muamalat Faculty at Universiti Sains Islam Malaysia (USIM) said MyKad remained crucial in the distribution of aid and subsidies.

“MyKad serves as an integrated database, enabling the government to identify target groups for aid distribution and targeted subsidies based on the profile contained in the MyKad, which includes information such as individual and household income, records of government aid received such as STR and Sara, and number of dependants,” she said.

Citing the example of implementing targeted subsidies for petrol, she said using MyKad was more efficient as the card’s security features could prevent duplication.

“However, if the government intends to implement targeted petrol subsidies via MyKad scanning in the future, it is advisable to first enhance information and digital technology infrastructure in rural areas,” she said.

Umi Hamidaton also recommended that the quality of MyKad continue to be improved, noting that incidents still occurred where the security chip could not be read and the card itself broke easily.

Blockchain enhancement

Blockchain technology can improve MyKad’s security and transparency by storing data in immutable digital ledgers, enabling full audit trails for each access and using cryptography for secure identity verification.

Dr Nor Alina Ismail, Data Science and Computing Faculty head at Universiti Malaysia Kelantan (UMK), said blockchain could ensure better data integrity through permanent records, cryptography and transparent verification across networks – making manipulation or hacking very difficult.

“Unlike centralised systems that are vulnerable to breaches and data loss, blockchain offers distributed storage and real-time audit trails, ideal for sensitive data like health records and digital identity if combined with strong privacy protection mechanisms,” she explained.

She said MyKad could be enhanced into a digital identity wallet through blockchain, integrating personal data like e-wallets, digital certificates, driving licences, health records and ID data securely in a single chain of identity.

She added that zero-knowledge proofs could allow verification of status – such as citizenship or age – without disclosing the full data, improving privacy.

The technology also enables cross-sector use (government, banking, healthcare, education and transport) through shared ledgers and automated smart contract verification.

“For instance, when applying for a bank loan, the bank can verify ID through NRD and employment status via EPF or LHDN without needing physical documents.

“This access can also be restricted via permissioned blockchain and logged for auditing, making processes more efficient and less prone to fraud while giving users full control,” she said.

However, for full implementation, a legal framework, stable digital infrastructure and strong privacy protection are required.

Anticipating that MyKad will evolve into a fully digital identity system within five to 10 years, Nor Alina said Malaysia could emulate countries like Estonia, which had a comprehensive digital identity system.

But, she acknowledged that building a blockchain-based MyKad system would require large government investment in technology, digital infrastructure upgrades, long-term maintenance and training.

“The main challenge is the high initial cost due to upgrading current systems, bridging the digital divide, enhancing existing laws, drafting new ones and developing a comprehensive cybersecurity policy,” she said.

“However, this transformation depends on the readiness of digital infrastructure, the legal framework, public technological literacy and data security assurance.

“Therefore, in this decade, we may see a hybrid approach, where MyKad exists in both physical and digital forms before fully transitioning to a blockchain-based digital identity once the nation’s technological and legal ecosystem is truly ready,” added Nor Alina.

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Thursday, 16 January 2025

Unmasking the danger of privacy coins


 

Technology supporting cryptocurrencies is used in the real world for drug trafficking, human trafficking, sexual exploitation and smuggling of goods 

Cryptocurrencies that emphasise anonymity and encryption are frequently used by criminals

USING state-of-the-art technology to support cryptocurrencies is a double-edged sword. It facilitates cross-border payments and remittances as well as financial inclusion for the underbanked or unbanked but is increasingly used for criminal activities.

It is used in the real world for drug trafficking, human trafficking, sexual exploitation and smuggling of goods, rather than just cybercrime like ransomware attacks.

According to a European Union Agency for Law Enforcement Cooperation (Europol) report in 2022, cryptocurrencies are being used for all types of crime requiring financial transmissions, the scale of which is difficult to estimate. Europol noted that criminals have also become more sophisticated in using cryptocurrencies to in complex money-laundering schemes.

Both Europol and the Basel Institute on Governance, which also published a report in 2022, point to the rapid progress of technologies involving cryptocurrencies and the challenges governments have in keeping up through legislation and law enforcement or the need to develop and adapt through investigative technologies and techniques.

It is only now that anti-money laundering (AML) and know-your-customer (KYC) processes common in transactions involving fiat money are starting to take into account cryptocurrency transactions.

Bank Negara and the Securities Commission (SC) have guidelines for cryptocurrencies and have hired specialists to monitor or regulate them. Now, the Malaysian Anti-corruption Commission (MACC) is looking at raising the capabilities of its officers who address cases in which cryptocurrencies are used to conceal financial trails.

The move involves further specialised training as well as acquiring advanced technology and equipment. In Malaysia, people can own cryptocurrencies and they can be traded on licensed digital exchanges, but are not considered legal tender.

Some say that the MACC is late to the game as the police already have the capabilities through the Kuala Lumpur-based Cryptocurrency Analysis Laboratory, which was jointly opened with the United Nations Office on Drugs and Crime in 2022. It is the first such laboratory in South-east Asia.

In fact, a series of fraud or scams leveraging cryptocurrencies have been crippled through this crime laboratory capability going from past news reports.

Also, Bank Negara and the SC have been exploring solutions for the past year or two.

A lawyer specialising in cryptocurrency projects shares that its basically track-and-trace to follow the money trail through the blockchain, which is essentially a digital ledger where all transactions are recorded and confirmed. Unlike cash, cryptocurrency transactions are highly traceable from start to finish, and with the right tools, can be mapped out how illicit funds have moved and how they are being funnelled.

When these tools acquire more data, they can also flag out wallet addresses that have been sanctioned or linked to illegal sources, which means authorities will also know whether the funds are tainted.

Compared with the banking system, tracing funds through the blockchain’s public digital ledger is easier, even when these funds cross borders.

According to the lawyer, the police can easily trace illicit fund flows even if a circuitous route is used. Banks have limited tracing ability and cooperation of foreign correspondent banks and law enforcement will be needed once funds cross borders.

Banking laws in other countries may differ pertaining to privacy and disclosure and in most cases, a court order is needed to request information.

There is a need to better understand altcoins such as privacy coins, as these cryptocurrencies that emphasise anonymity and encryption are frequently used by criminals.

There are many privacy coins including Monero, Dash and Zcash but Monero seems to be the cryptocurrency of choice among criminals. They work by enabling anonymous transactions through obscuring both sender and receiver addresses.

What makes them even more useful is that the transaction amounts are also hidden through the use of an obfuscated public ledger specifically for privacy.

The MACC as well as other law enforcement agencies will have to equip themselves with the right tools and know-how to confront these challenges.

Europol describes it thus: “Often illicit funds do not flow straight from wallet to wallet. They instead travel through a multi-step process involving different financial entities, many of which are novel and are not yet part of standardised, regulated financial payment markets.

“Obfuscation methods and other countermeasures continue to be developed and used by criminals.”

Other methods used by criminals include over-the-counter trading in which tracing the trade is almost impossible. Initially used for smaller transactions, there are signs that it is now being used for much bigger ones.

The enormity of the challenges confronting law enforcement agencies such as the MACC is that privacy coins are hard to track as most have been delisted by cryptocurrency exchanges under pressure from governments and no one knows how prevalent the use of these coins is.

Criminal networks often use unlicensed exchanges with looser AML and KYC processes, enabling transactions that involve a complex series of steps to throw off authorities, before eventually being traded for fiat currency.

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Thursday, 4 November 2021

Big dreams of becoming a global cryto hub

Singapore plans to emerge as key player

Easing restrictions: A representation of the virtual cryptocurrency bitcoin. The Monetary Authority of Singapore is against clamping down on crypto. — Reuters

 SINGAPORE: Singapore is seeking to cement itself as a key player for cryptocurrency-related businesses as financial centres around the world grapple with approaches to handle one of the fastest growing areas of finance.

“We think the best approach is not to clamp down or ban these things,” said Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), which regulates banks and financial firms.

Instead, MAS is putting in place “strong regulation”, so firms that meet its requirements and address the multitude of risks can operate, he said in an interview.

Nations differ vastly when it comes to how they handle crypto: China has cracked down on large amounts of activity in recent months, Japan only recently allowed dedicated crypto investment funds – though El Salvador has embraced bitcoin as legal tender.

In the United States, while there are an abundance of options for investing in the burgeoning asset class, regulators are concerned about everything from stablecoins to yield-generating products.

“With crypto-based activities, it is basically an investment in a prospective future, the shape of which is not clear at this point,” said Menon, who has helmed the MAS for about a decade.

“But not to get into this game, I think risks Singapore being left behind. Getting early into that game means we can have a head start, and better understand its potential benefits as well as its risks.”

The stakes are high for the small island nation, which has already earned a reputation as a global wealth hub. Singapore must raise its safeguards to counter risks including illicit flows, Menon said.

The city state is “interested in developing crypto technology, understanding blockchain, smart contracts and preparing ourselves for a Web 3.0 world,” he said, referring to the third generation of online services, which will be a key theme during the Singapore Fintech Festival that MAS will host next week.

Menon acknowledged that banks and other financial institutions will face certain challenges with the decentralisation of finance. Still, Singapore wants to be “well positioned” for 2030 when “an economy of tokenisation” may come, he said.

Singapore isn’t the only place with crypto ambitions. Locations as diverse as Dubai, Miami, El Salvador, Malta and Zug in Switzerland, are also making efforts.

It can be a fine line to tread, given the crypto industry grew up with few regulations, so many players balk at government officials’ attempts to impose guardrails.

Singapore’s approach has attracted crypto firms from Binance Holdings Ltd, which has had a series of run-ins with regulators around the world, to Gemini, a US operator targeting institutional investors, to set up base.

Some 170 companies applied for a MAS licence, taking the total number of firms seeking to operate under its Payment Services Act to about 400, after the law came into effect in January 2020.

Since then, only three crypto firms have received the much-coveted licences, while two were rejected. About 30 withdrew their application after engaging with the regulator. 

Among those approved is the brokerage arm of DBS Group Holdings Ltd, Singapore’s largest bank, which is also a pioneer in setting up a platform for trading of digital tokens while offering tokenisation services.

The regulator is taking time to assess applicants to ensure that they meet its high requirements, Menon said. The MAS has also boosted resources to cope with high volumes of prospective services operators, he said.

“We don’t need 160 of them to set up shop here. Half of them can do so, but with very high standards, that I think is a better outcome,” he said.

Menon said the benefits of having a well-regulated local crypto industry could also extend beyond the financial sector.

“If and when a crypto economy takes off in a way, we want to be one of the leading players,” he said.

“It could help create jobs, create value-add, and I think more than the financial sector, the other sectors of the economy will potentially gain.” — Bloomberg

Source link

 

 

On top for a third year running | The Star

 

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Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on PC motherboard in this illustration take...
 

Thursday, 28 October 2021

Guidance on Cryptocurrency investments, Digital asset exchanges cintinue to thrive in Malaysia

Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on PC motherboard in this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/Illustration


  

 Dr Tan says the forum is meant to assist the public with the best investment strategy

 Guidance on investments

Experts to speak on  Cryptocurrency at online forum on Nov 6

TWO experienced financial professionals will share their thoughts and analyses at the ‘Investment and Cryptocurrency’ online forum on Nov 6, 2021.

One of them is German-born Mustafa Aydemir who is a senior investment analyst at Saturna Fund Management Company.

He is one of the fund managers licensed by the Securities Commission Malaysia.

Besides being familiar with conventional financial investment, he is also good at Islamic financial investment.

Another speaker is Edgar ‘Jobe’ Gasper, the chief operating officer of SINEGY involved in digital asset trading, which is legal and approved by the Securities Commission Malaysia.

He has extensive practical experience in digital transactions, blockchain technology and cryptocurrency mining operations.

Both of them will conduct in-depth sharing of investment knowledge at the online forum organised by the Malaysian Financial Planning Council (MFPC) Penang Chapter from 9.30am to noon.

MFPC Penang Chapter chairman Dr Tan Chuan Hong said the forum was meant to assist the general public and retail investors to ride out the pandemic crisis with the best investment strategy.

Citing a report from the Malaysian Institute of Economic Research, he said the Government had been utilising large-scale borrowing to assist civilians and small medium enterprises as well as boost the economy since the country was hit by the Covid-19 pandemic almost two years ago.

“This has resulted in a rising debt ratio.

“Up to June this year, the debt ratio exceeded the statutory 60%, reaching 61.1%.

“This has created a lot of concern on whether Malaysia can rapidly recover from this economic crisis.

“Can our stock market this year perform like it did last year when it soared by more than 10% again in just two months? Or is it the end of the bear market?

“To make wise investment decisions, investors need time to collect and analyse the information cautiously,” he said.

Dr Tan said that many still needed more proper education about cryptocurrency investment.

He said many Malaysians had been scammed and lost their money due to inaccurate information obtained online.

“Cryptocurrency investment is originally a high-risk and high-return investment tool.

“Therefore, investors who are blinded by greed for high returns often suffered huge losses,” he said.

On the same day, MFPC executive director Chung Kar Yin, Universiti Sains Malaysia School of Management dean Prof Dr Noor Hazlina Ahmad and Tunku Abdul Rahman College Penang Branch Campus head Assoc Prof Dr Toh Guat Guan will also hold a brief sharing session.

Participants have to fill in the online evaluation form after the session to obtain a certificate of participation and 3CPDs.

Those interested can register online for free.

The public registration link is https://1st.mfpc.org.my/PublicEventRegistration/302 and the MFPC members registration link is https://1st.mfpc.org.my/.


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Digital asset exchanges continue to thrive

 About 300,000 new accounts created to date

KUALA LUMPUR: Despite market uncertainties following the Covid-19 pandemic, about RM16bil worth of digital assets and cryptocurrencies have been traded in Malaysia between October 2019 and September 2021.

Securities Commission (SC) chairman Datuk Syed Zaid Albar said digital asset exchanges in the country would continue to thrive this year, with about 300,000 new accounts created to date.

“Investor participation in alternative and digital platforms continues to be robust. New digital investment management (DIM) entrants have contributed to the segment’s assets under management growth.

“In fact, compared to last year, our eight licensed DIM holders have opened 90% more DIM accounts from January to July this year,” he said at the SCxSC Fintech Conference 2021.

In addition, Syed Zaid said the increased demand for online brokerage services resulted in close to 35% increase in new accounts opened as of July 2021.

Given the positive developments, he expects the industry to maintain the encouraging growth performance this year.

Meanwhile, Syed Zaid disclosed that equity crowdfunding (ECF) and peer-to-peer (P2P) financing platforms have raised about RM1.3bil since April last year, given the funding needs of micro, small and medium enterprises (MSMEs).

Citing data, he said about RM625mil funds were raised through ECF and P2P in the first half of this year, an increase of 151% and 220%, respectively, from a year ago.

Both platforms attracted young investors, with 60% of participants aged below 35.

Since their inception, 21 ECF and P2P financing platforms have raised about RM2.2bil for nearly 4,000 MSMEs.

Moving forward, the SC said fintech could be the crucial enabler in helping the country to recover as the pandemic had an adverse impact on businesses.

“The SC would seek to drive greater adoption of digital capability to enhance capital formation efficiencies and increase investor participation in the capital market,” added the regulator. 

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 Related:

 

Mnuchin is investing in blockchain – not crypto | The Star

https://www.thestar.com.my/business/business-news/2021/10/21/mnuchin-is-investing-in-blockchain---not-crypto


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Friday, 22 November 2019

Blockchain: Internet of Value/ Currency of Trust; Private cryptocurrency a misallocation among blockchain technology, say research & economist



  • Blockchain embodies the internet of value. How will it revolutionize our lives and our pockets?

  •  And, we look at the qualities Blockchain needs to spark mass adoption.


https://youtu.be/oJGVvJS0A0I

Blockchain, one of the buzzwords in technology, is set to rise in China. Recently, Chinese President Xi Jinping underscored the fledgling technology as the country increasingly views Blockchain as key to future innovation. Has a digital game changer arrived? How will a boom in Blockchain impact our lives? Today we delve into the world of the new technology and talk to Don Tapscott, co-founder and executive chairman of the Blockchain Research Institute, to find out more.

https://youtu.be/DCLqWpXFE2o

Currency of Trust


Blockchain has the potential to be revolutionary. But, what hurdles must it overcome before it can hit the mainstream? In London, we invited Patrick McCorry, founder and CEO of PISA Research, a grant funded by a group of Blockchain companies, to decode this ever-changing world.

https://youtu.be/A2IDapvfUTM



https://youtu.be/41hPRCnUCtI

https://youtu.be/8H-pJ9hs9I4


Private cryptocurrency a misallocation among blockchain technology, says economist

Cryptocurrency is digital-based cash among the internet world nowadays. Born from blockchain, this kind of "currency" is blooming in terms of high privacy. Acknowledging that, Nobel Prize-winning economist and Harvard professor Eric Maskin commented that private cryptocurrency is a misallocation.

"The most important application of blockchain so far has been cryptocurrency, and that is a terrible misallocation. In my view, cryptocurrency, at least private cryptocurrency like bitcoin is a mistake," said Maskin.

"Because the public currency like RMB and U.S. dollar are much more useful than private currency. [Public currencies] they preserve the power of central banks to conduct monetary policy. If no one is using the dollar, then the U.S. monetary policy is useless. So I'm worried about cryptocurrency only to the extent that it reduces the use of currencies like RMB or dollar," he added.

He also pointed out that cryptocurrencies could interfere with central banks' monetary policies.

Meanwhile, Maskin supports the idea that blockchain is a technology. He noted that it is one of the exciting developments that have come along in recent years.

"Blockchain can make all sorts of transactions much easier and much more secure. It can also ensure that only the information that people need to have gets transmitted," said Maskin.

"Blockchain is a way for me to guarantee that only what you need to about me gets told. And that's valuable in a world where we're beginning to worry about privacy issues," the professor explained.

Besides, Maskin supports building the country's own digital currencies. With the backdrop of e-payment booming around the world, Maskin said the digital currency can make transaction easier but it won't have all of the unpleasant side effects of these private currencies.

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Read more:

Blockchain with Chinese characteristics





Rightways