Deputy Governor of Maldives Monetary Authority (MMA) Ahmed Imad has revealed that efforts are underway to draft a regulation pertaining to Asset-Backed Online Money. He made the statement while speaking at the panel discussion held at Maldives National University (MNU).
MMA has been exerting several efforts to digitalise the financial system. Under these efforts, it has successfully established a system in which funds can be transferred within banks in a span of few seconds. MMA's Deputy Governor Imad stated that while the Maldives Instant Payment System, "Favara", is already connected with several banks, efforts are ongoing to incorporate additional banks into the system.
Emphasising the increasing global demand for digital money, Imad indicated that the MMA is collaborating with the Capital Market Development Authority (CMDA) to develop a joint regulatory framework for the introduction of Asset-Backed Online Money in the Maldives. He also mentioned that the MMA supports the use of unbacked cryptocurrency by individuals.
Cryptocurrency is a digital currency that operates independently. It is not widely accepted by many banks globally due to its lack of backing by tangible assets or currencies issued by central banks.