<p>BLOX, the Malaysian Web3 firm, has forged a strategic partnership with AsiaPay, a payment processor and gateway solution provider in Asia, focused on crypto payments.</p><h2 id="header-0"><strong>Memorandum of understanding (MOU)</strong></h2><p>According to a recently published <a href="https://www.itnewsonline.com/PRNewswire/AsiaPay-Participation-in-Bank-Negara-Malaysia-Sandbox-to-explore-crypto-as-a-payment-In-Malaysia/964824" rel="noopener noreferrer nofollow">press release</a>, the collaboration has been formalized through a memorandum of understanding (MOU) and aims to collectively explore and develop cryptocurrency digital payment solutions tailored for the Malaysian market.</p><p>As global consumers increasingly gravitate towards the most frictionless payment methods, cryptocurrencies are gaining significant traction. However, the seamless integration of cryptocurrencies into day-to-day transactions requires the support of adept payment service providers.</p><h2 id="header-1"><strong>Stablecoin potential</strong></h2><p>Despite the burgeoning popularity of cryptocurrencies, the inherent volatility in their prices poses a considerable challenge. To address this challenge, stablecoins have emerged as a viable solution. The adoption of stablecoins has gained momentum, particularly in the business-to-business (B2B) segment, where the efficiency of blockchain-based payments and instant settlement can be harnessed without being hampered by the uncertainties of price fluctuations.</p><p>It is within the area of stablecoins that BLOX can lend support, given that the entity is responsible for the first Malaysian ringgit-denominated stablecoin (MYRC). Ethan Chung, CEO and Co-Founder of BLOX, expressed enthusiasm about the partnership, stating:“I’m excited to announce our partnership with AsiaPay, enabling Malaysian merchants to effortlessly accept crypto payments without the need for technical expertise. Empowering businesses, simplifying transactions.”</p><h2 id="header-2"><strong>Regulatory sandbox</strong></h2><p>The crypto payment exploration, which will be undertaken by the two companies, is being enabled under the auspices of a regulatory sandbox environment provided by Malaysian central bank Bank Negara Malaysia.</p><p>Loo Tak Kheong, Country Head and Director at AsiaPay Malaysia, emphasized the added value this collaboration brings to their payment solutions. He said:“At AsiaPay, we provide payment acceptance solutions with multi-currency, multi-lingual, multi-card, and multi-channeled payment capabilities, which we believe by adding an additional payment method via crypto, will further enhance the value-add service to our Merchants and Partners in the payments ecosystem.”</p><p>AsiaPay operates throughout the Asian region, headquartered in Hong Kong but with a local corporate entity also established to serve the Malaysian market.</p><p>Malaysia has shown interest in harnessing blockchain for the purposes of international trade and payments. Last year the Southeast Asian country’s Prime Minister had <a href="https://coinnesslive.page.link/sXEaWu7EopuWjUMN8" rel="noopener noreferrer nofollow">expressed interest</a> in decreasing its dependency on use of the U.S. dollar. Under the guidance of the country’s central bank, Malaysian banks have <a href="https://www.coindesk.com/markets/2018/03/23/9-malaysian-banks-team-up-for-trade-finance-blockchain-apps/" rel="noopener noreferrer nofollow">explored</a> the use of blockchain for the purpose of trade finance.</p><p>The country had expressed interest in a central bank digital currency (CBDC) in a financial sector blueprint it had previously <a href="https://www.bnm.gov.my/documents/20124/5915429/fsb3_en_box3.pdf" rel="noopener noreferrer nofollow">published</a>, mapping a way forward from 2022 to 2026. The same document deems decentralized cryptocurrencies like bitcoin to be “non-backed digital assets.” Previously the country’s deputy finance minister had <a href="https://www.bloomberg.com/news/articles/2022-03-24/malaysia-rules-out-adopting-cryptocurrency-as-legal-tender" rel="noopener noreferrer nofollow">said</a>, “cryptocurrencies like Bitcoin are not suitable for use as a payment instrument due to various limitations.”</p><p>This strategic alliance between BLOX and AsiaPay reflects the ongoing evolution of payment systems, positioning both companies at the forefront of the exploration of crypto-as-a-payment means in Malaysia.</p>

AsiaPay and BLOX explore crypto payments within Malaysian market

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