A New Cross-Border Payment Option For Malaysians: A Practical Guide To Cryptocurrency

Bank wire transfers usually take three to five business days. Also, the fees are not low. 

Additionally, I think Western Union and MoneyGram are faster. But their rates are also relatively high. 

Now, there are Malaysians who spend a lot of time 

• Conducting cross-border business
• Sending money to family overseas
• Spending on international platforms

So, they face these issues with traditional channels. In fact, these have long been a concern. Cryptocurrency for cross-border payments offers an alternative.

Many online platforms already accept cryptocurrency payments. For example, the Dk88 platform supports deposits and withdrawals in multiple digital currencies. 

Malaysian users can transact directly with cryptocurrency on such platforms.

Also, they will be able to avoid currency exchange hassles and additional fees. 

So, I suppose this is why this payment method is being adopted by more users over time.

What Is The Contribution Of Cryptocurrency For Cross-Border Payments?

Traditional cross-border transfers pass through multiple intermediary banks, each adding fees and processing time. 

Cryptocurrency transactions are peer-to-peer, with funds sent directly from sender to receiver without bank involvement. This is why they are faster and cheaper.

Bitcoin transactions are usually confirmed within ten minutes to one hour. 

Ethereum is faster, often completing within a few minutes. Stablecoins such as USDT have lower price volatility, making them suitable for users who prefer to avoid exchange rate risk. 

In terms of fees, transferring USD 10,000 may cost only a few dollars, while banks can charge tens or even hundreds.

Main Reasons Malaysians Use Cryptocurrency For Cross-Border Payments Include:

• Fast transfers, without waiting several days for funds to arrive.
• Low fees are especially advantageous for large transfers.
• No operating-hour limits, allowing transfers on weekends and holidays.
• No strict single-transaction limits, which banks sometimes impose on large foreign transfers.
• Better privacy, with no detailed records on bank statements.

There are drawbacks as well. Price volatility is the biggest issue, unless stablecoins are used. 

In addition, the recipient must be familiar with cryptocurrency; otherwise, receiving funds may not be practical.

What Are Some Common Cryptocurrencies For Cross-Border Payments Used Among Malaysians?

Not all cryptocurrencies are suitable for payments. There are thousands of coins on the market, most with low liquidity and limited acceptance, making them impractical for cross-border transfers. 

Malaysian users tend to focus on a few major cryptocurrencies that offer good liquidity, broad exchange support, and easy conversion after receipt.

USDT is the most widely used. It is pegged to the US dollar, with one USDT roughly equal to one dollar, providing price stability. 

Senders do not need to worry about sending USD 1,000 and the recipient receiving significantly less. 

This is especially popular for business transactions, as pricing and settlement are straightforward. 

USDT is available on several networks. TRC20 offers the lowest fees, while ERC20 is more expensive but has broader compatibility. The network should be confirmed with the recipient before transferring.

Bitcoin remains a traditional choice. Although its price is volatile, with frequent rises and drops, it has the widest acceptance. 

Almost all exchanges and cryptocurrency-friendly merchants accept Bitcoin. 

Its liquidity is strong, and conversion to local currency is relatively easy, regardless of the recipient’s country.

What Are The Factors To Consider When Choosing A Cryptocurrency?

• First, you must check whether the recipient can receive the coin. Some smaller exchanges do not support all assets.
• Additionally, you must confirm the transfer fees. You will do this to avoid high fee ratios for small transfers.
• Then, you need to look into the required settlement speed. Bitcoin confirmations are slower than those of stablecoins.
• Also, you need to check the tolerance for price volatility. Also, it must be with stablecoins for urgent use.
• Finally, you need exchange support on both sides. This will ensure smooth deposits and withdrawals.

Ethereum transfer fees are sometimes high. Also, this happens especially during network congestion. This is when gas fees may rise to tens of dollars. 

However, Ethereum has a large ecosystem. Additionally, it has many DeFi applications built on it. 

So, guess what I do if the recipient uses Ethereum-based services? I just sent ETH directly.

I suppose it may be more convenient. Also, this way, I avoid additional conversion steps.

What Is The Practical Operating Process Of Cryptocurrency For Cross-Border Payments?

There are several ways to buy cryptocurrency in Malaysia. Luno is a locally compliant exchange registered with the central bank, supporting direct purchases of Bitcoin and Ethereum with Malaysian ringgit. 

Account registration requires identity verification, including an IC upload and selfie. 

Once approved, users can deposit funds via bank transfer or FPX. Binance also operates a Malaysia-focused platform, offering a wider range of coins and slightly lower fees. 

Peer-to-peer platforms allow direct trading with other users, sometimes at better prices, but counterparty reputation should be carefully checked.

After purchasing cryptocurrency, the transfer process itself is straightforward: 

• Firstly, I open the wallet app 
• Secondly, I select the send function
• Thirdly, I enter the recipient’s address and amount
• Then, I confirm the network fee
• Finally, I submit the transaction. 

When all these are done, I just wait for blockchain confirmation. However, several details can easily cause issues, especially for beginners.

What Are Some Key Points For Cross-Border Cryptocurrency Transfers?

These are the points that I follow to ensure that my cross-border payments are done efficiently. 

• Firstly, I always copy and paste addresses. This is because manual entry can easily result in errors.
• Secondly, I make sure the network type matches. ERC20 addresses cannot receive TRC20 tokens.
• Thirdly, I send a small test amount before large transfers. I do this to confirm the address is correct.
• Finally, I always keep the transaction hash as proof. This way, I allow checks via blockchain explorers if needed.
• Also, I stay aware of the recipient country’s regulations. Some jurisdictions restrict cryptocurrency use.

On the recipient’s side, once funds arrive in the wallet, they can be held or sold on a local exchange for fiat currency. 

Most countries have local exchanges that support fiat withdrawals. 

If everything runs smoothly, the entire process—from sending funds to the recipient receiving cash—can take just two to three hours. 

Network congestion may slow it down, but it rarely exceeds one day. Traditional bank transfers cannot match this speed.

The Importance Of Cryptocurrency For Cross-Border Payments Explained

I must mention a very important point, even though you might already know this. 

The traditional finance regulation does not protect cryptocurrency transactions. 

So, if I mistakenly transfer some funds, I won’t be able to reverse it. Additionally, I will also face difficulties if I try to recover funds from scams. 

Platform choice is therefore critical, and users should rely on reputable, well-established exchanges.

Malaysia’s Stance On Cryptocurrency

It is relatively open, but regulations still apply. 

Large transactions may require tax reporting. So, I would recommend professional advice. 

Policies vary by country, so it is best to understand the recipient’s local rules before transferring funds to avoid complications.

Price volatility has already been mentioned. For funds not needed immediately, holding Bitcoin or Ethereum may be acceptable. 

For urgent use, stablecoins are more reliable. Finally, private keys and recovery phrases must be stored securely, as losing them effectively means losing access to the funds.