JAN 11, 2024
AsiaPay and BLOX explore crypto payments within Malaysian market
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.
Memorandum of understanding (MOU)
According to a recently published press release, 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.
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.
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.
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.”
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.
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.”
AsiaPay operates throughout the Asian region, headquartered in Hong Kong but with a local corporate entity also established to serve the Malaysian market.
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 expressed interest in decreasing its dependency on use of the U.S. dollar. Under the guidance of the country’s central bank, Malaysian banks have explored the use of blockchain for the purpose of trade finance.
The country had expressed interest in a central bank digital currency (CBDC) in a financial sector blueprint it had previously published, 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 said, “cryptocurrencies like Bitcoin are not suitable for use as a payment instrument due to various limitations.”
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.