Crypto researcher SMQKE drew attention to a working paper published in July 2025 under Bank Negara Malaysia’s working paper series, titled Fundamentals of Modern Money and its Application to Central Bank Digital Currency (CBDC). The report includes remarks on the potential role of private tokens in payment systems and provides an assessment of the suitability of existing cryptocurrencies for settlement purposes. The working paper, identified as WP3/2025, is explicitly labelled as research in progress, carrying the usual disclaimer that its contents represent the authors’ views and not formal policy positions of Bank Negara Malaysia. Nonetheless, SMQKE emphasized the importance of key passages within the document that outline the potential role of private tokens such as XRP in future payment systems. 2025 CENTRAL BANK OF MALAYSIA REPORT CLAIMS XRP MAY REPLACE BANK DEPOSITS AS BITCOIN AND ETHEREUM DEEMED UNSUITABLE FOR PAYMENT SYSTEMS “Private tokens such as XRP may be widely used as means of payment outside the banking system in the future, replacing CIC or bank… pic.twitter.com/FmlcmczHc0 — SMQKE (@SMQKEDQG) September 20, 2025 Reference to XRP in the Report One section of the paper referenced in the tweet states: “Private tokens such as Bitcoin or XRP may be widely used as means of payment outside the banking system in the future, replacing CIC or bank deposits.” In this context, CIC refers to cash in circulation, while deposits represent balances held within the traditional banking framework. This remark illustrates that the authors recognize scenarios in which privately issued digital assets could play roles beyond current monetary and deposit structures. The wording in the document suggests that private tokens could evolve into recognized mediums of exchange that operate parallel to or outside the existing banking ecosystem. This projection is presented as a possible outcome in light of ongoing developments in digital money, including central bank digital currency initiatives. Assessment of Bitcoin and Ether The images attached to SMQKE’s post also show another section of the report addressing the role of Bitcoin and Ether. The authors note: “Crypto assets such as Bitcoin and Ether are unsuitable as payment instruments for most DLT use cases due to their high volatility and low scalability.” This judgment aligns with long-standing concerns in policy and research circles regarding the limited capacity of these networks to handle large-scale retail or wholesale payments while maintaining stability. The report also includes diagrams comparing DLT-based and account-based payment models, as well as potential hybrid solutions. These visual explanations illustrate the technical challenges associated with integrating certain cryptocurrencies into regulated financial infrastructure, particularly when stability and transaction throughput are key requirements. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Further Context of the Working Paper While SMQKE’s post focused on references to XRP , Bitcoin , and Ether, the broader working paper discusses modern money fundamentals and their application to CBDC from both technical and Shariah-compliance perspectives. The authors explore distinctions between public and private money, token-based and account-based systems, and potential designs for central bank-issued digital currencies. The paper also reviews bridge solutions that could connect distributed ledger contract execution platforms with existing account-based settlement systems. This reflects an interest in ensuring scalability, interoperability, and compliance as potential digital currency frameworks are evaluated. Taken together, the paper and SMQKE’s summary underline ongoing research into the evolving relationship between central bank-issued money, private digital assets, and the technical infrastructure that underpins modern payments. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Central Bank of Malaysia Drops Bombshell on XRP Potential appeared first on Times Tabloid .
