"While no decision has been taken to issue CBDC, we have concentrated our research on CBDC via proof-of-concept and experimentation to strengthen our technical and policy skills in the event that the necessity to issue CBDC arises in the future."

Bank Negara Malaysia has collaborated with the central banks of Australia, Singapore, and South Africa to establish a cross-border payments study involving numerous CBDCs. The financial institutions wanted to know whether all stakeholders might cut the expenses of such transactions and make them more accessible.

The collaborative initiative, codenamed Project Dunbar, aimed to create prototype shared platforms that would allow direct CBDC transactions without the need for middlemen.

The central bank Digital currencies are digital tokens issued by superior entities such as governments and central banks and are completely controlled by them. As a result, their use-cases sparked several discussions, with many people claiming they may undermine the monetary system and limit people's freedom.

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Edward Snowden, the prominent US whistleblower, is one such individual who is passionately opposed to CBDCs. He called them a "perversion of cryptocurrencies" and a "cryptofascist currency" last year, claiming that they may give governments a lot of power while giving society less independence.

Snowden used China as an example to back up his claim. The absolute prohibition on all crypto there, combined with the introduction of the digital-yuan, he claims, is meant to "improve the State's power to put itself in the midst of every single transaction."

He also said that the establishment of a CBDC in the United States would not be the digital counterpart of the dollar:

"After all, most dollars are now digital, existing not as a folded bill in your wallet, but as a record in a bank's computer, accurately requested and reproduced behind the glass of your phone."

According to Gary Gensler, the SEC will focus on regulating cryptocurrency exchanges in 2022

Gary Gensler, the current Chair of the US Securities and Exchange Commission, believes that Washington's financial watchdogs should actively supervise bitcoin trading platforms. He expressed optimism that more monitoring would take place this year to provide investors with more security when dealing with bitcoin and altcoins.

The 64-year-old American has often said that stricter investor laws are needed in the digital asset market. Last year, he expressed his admiration for the business but said that this would not prevent him from advocating for tighter market controls.

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"When it comes to investor protection, I'm not neutral. If someone wants to speculate, that's their option, but as a country, we have a responsibility to safeguard those investors against fraud," Gensler said at the time.

During a recent virtual news conference, he reaffirmed his position, stating that bitcoin exchanges should face further scrutiny from the SEC and other financial authorities this year. He anticipates that the increased monitoring will offer investors the required safeguards when dealing with digital assets.

"I've directed staff to look into every possible option to bring these platforms inside the purview of the investor protection remit." If the trading platforms do not enter the regulated market, the public will be susceptible for another year," he said.

It is worth mentioning that the SEC appointed a new senior adviser at the end of 2021, whose primary responsibility is to assist Chairman Gary Gensler on cryptocurrency rules. Corey Frayer is the new executive's name, and he previously worked on "problems ranging from consumer and investor protection."

The comprehensive crypto prohibition enforced by the Chinese government inside its borders was one of the year's major events in the digital asset market. Following that, a number of other nations began to consider whether they should follow suit.

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Gary Gensler said in October that the United States would not be one of those countries. While following the Chinese way is not on the cards, the Chairman said once again that financial authorities have focused on improving investor protection in the field.

Fed Chair Jerome Powell also said that the United States has no plans to limit the use of digital assets. He, like Gensler, advocated for more monitoring in the sector.