Cash is not dead: BNM will continue issuing physical banknotes despite the growing popularity of cashless transactions. — KT GOH/The Star
GEORGE TOWN: Despite the popularity of e-wallets and cashless transactions among consumers nowadays, Bank Negara Malaysia (BNM) will not stop issuing new banknotes for circulation.
Bank Negara, which last issued currency notes with new designs back in 2012, said moving forward, cash will remain an important means of payment in Malaysia’s economy.
It said despite the significant progress in the adoption of digital payments in the country, it would ensure that there is sufficient cash in circulation to meet the demand from the public at all times through a continuous delivery of new notes as well as fit notes generated from currency processing.
“These new and fit notes are supplied to the public and retailers via financial institutions,” the central bank said in a statement.
Small and Medium Enterprises Association Malaysia (Samenta) honorary national secretary SH Yeoh said many of its members are already conducting cashless transactions where possible.
“Digital payment is being adopted rapidly thanks to the availability and accessibility of different e-transaction channels such as Touch ‘n Go and debit cards.
“We don’t think cashless transactions will entirely supplant physical currency transactions.
“Virtual payments offer many advantages, including convenience, security and reduced costs. However, there are several disadvantages to consider, such as technical issues, security risks and limited consumer protection.
“From a business perspective, it’s always advantageous to have more options for payment,” he said.
According to Bank Negara, new-design banknotes have not been printed for more than a decade with the new-look currency notes last issued 12 years ago.
During the second half of 2012, the fourth series of the new Malaysian banknotes was circulated in denominations of RM1, RM5, RM10, RM20 and RM100.
Three years earlier, the RM50 notes were issued with a new design to commemorate Malaysia’s 50th National Day.
For the record, Bank Negara began issuing currency notes in June 1967, in five denominations of the then dollar (before the ringgit became the official Malaysian currency): $1, $5, $10, $50 and $100. A $1,000 note was issued on Sept 2,1968.
On Feb 5, 1996, it introduced the RM2 banknote, which was the first denomination with the Vision 2020 design.
Meanwhile, trainee chef Peter Lai, 31, said he has switched to using cashless payments for all his transactions as they are more convenient and time-saving.
“I stopped using physical notes during the pandemic. Now, by using e-wallets, I also stand to win rewards and get special privileges,” he said.
However, civil servant Abd Hamid Mohd, 54, vouched for physical banknotes as being the safest method to beat digital fraud.“I just don’t trust digital transactions that much.
“Maybe I’m scared of being conned or something going wrong during the transaction process,” he said.
According to a survey, the 25 to 35 age group uses online bank transfers and e-wallets the most.
It was reported that Touch ‘n Go was the most popular e-wallet used by Malaysians, especially to pay tolls, parking and online transactions for food and beverages and delivery services.
