Embrace cryptocurrencies the right way and learn to manage risk well, says Codam
Centre Of Digital Assets Malaysia (Codam) president Dzulkifli Ahmad advised public must embrace cryptocurrencies the right way.
However, when armed with the right knowledge, the average person could learn how to manage risk effectively said Centre Of Digital Assets Malaysia (Codam) president Tan Sri Dzulkifli Ahmad.
Dzulkifli who now heads Codam, a cryptocurrency education and advocacy centre, said digital currencies were often laced with negative connotations however even sceptics cannot deny the fact that digital currency as well as the technology behind it - blockchain - is here to stay.
“We have to embrace this technology. While there are some who often relate cryptocurrency with scams, this is not the case if you are armed with the right knowledge,’’ adding that by doing so, people will learn how to manage risk appropriately.
Dzulkifli was speaking during Codam’s advocacy engagement on cryptocurrency and blockchain technology with Sinar Harian, Sinar Daily and Rasuah Busters earlier today.
Dzulkif added other investments such as properties, stocks and foreign currency exchange posed their own risk but smart investors spent more time accumulating knowledge before they engage in any investment.
“The same must be practised for cryptocurrency,’’ he again stressed.
Weighing on government regulation, Dzulkifli stated that Malaysia still lags behind on deciding on regulating digital currency much less formulating the right policies on regulation and enforcement.
Instead, Dzulkifli urged the government to look into regulating the flow of monies from trading activities rather than the act of trading itself adding that the government would be able to tax such transactions more effectively.
Speaking at the event was also Codam chief executive officer Raja Daniel Matiin Raja Nordin who also advised the public not to head into cryptocurrency without any due diligence.
“If you are venturing into cryptocurrency with that mindset, then you are doing it wrong. You have to engage in your own personal journey by learning what its potentials and risks are.
“Cryptocurrency also has a low barrier of entry and is more transparent compared due to blockchain technology. It is something that you can’t tamper with.
“As a bit of simple advice, take the time to learn and only put into funds that you are willing to part with. You don’t have to take on exorbitant loans or borrow from families.
“Don’t do that. You can start with as simple as RM50 and treat it like any other investment that could pay dividends in the long run,’’ he said.
Also present at the media engagement was Karangkraf Media Group chairman Datuk Hussamuddin Yaacub, chief executive officer Farah Hussamuddin and Rasuah Busters chief secretariat Nurhayati Nordin.
Weighing on the matter, Hussamuddin stated it was important for the public to be properly exposed to cryptocurrencies and blockchain technology.
However, Hussamuddin also concurs with Dzulkifli and Raja Daniel that those interested in engaging in cryptocurrencies must be patient and learn to manage their expectations and the associated risk well.
“Cryptocurrencies is here to stay. So we have to learn about every aspect of it but at the same, we must also understand that this shouldn't be treated like another get rich quick scheme.
“Do your research and seek expert opinion before going into these ventures,’’ he said.
In Malaysia, cryptocurrencies were considered as a security however the government stated that it has no intention of recognising them as a legal tender.
Deputy finance minister I Datuk Shahar Abdullah explained in the Dewan Rakyat on March 24 that was mainly due to the volatility of cryptocurrencies and cyber security risk among other limitations.
This comes after deputy communications and multimedia minister Datuk Zahidi Zainul Abidin had urged the government to adopt cryptocurrencies as a legal tender.
Similarly, last January Bank Negara Malaysia was reported to assess the potential benefits of adopting digital currencies.
