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According to reports, the country’s central bank, Bank Indonesia, is considering issuing central bank digital currency (CBDC) to combat the use of cryptocurrencies. “CBDC will become one of the tools against cryptocurrency. We assume that people will find CBDC more credible than cryptocurrency,” said the assistant to the governor of the central bank.
The central bank sees CBDC as a tool to “fight cryptocurrency”
Juda Agung, assistant governor of Bank Indonesia, the country’s central bank, spoke of cryptocurrency and central bank digital currency (CBDC) as the deputy governor of the central bank during the “appropriate test” in Parliament.
According to a Bloomberg report, he said that Bank Indonesia hopes to issue digital rupiah as legal tender to fight against cryptocurrencies, and pointed out that the central bank has been studying this issue since the beginning of this year.
The Assistant Governor explained that in Indonesia, crypto assets are traded together with commodity futures and are regulated by the Ministry of Trade. However, he emphasized that they have had a significant impact on the country’s financial system and elaborated on:
CBDC will be one of the tools against encryption. We assume that people will find that CBDC is more trustworthy than encryption. CBDC will be part of the effort to resolve the use of cryptocurrency in financial transactions.
According to data from the Ministry of Trade, as of July, about 7.4 million Indonesians have invested in crypto assets, which is double the previous year. The total amount of their crypto transactions is approximately IDR 478.5 trillion (USD 33.3 billion). The Indonesian government is advancing a plan to establish a dedicated cryptocurrency exchange.
At the same time, Indonesia’s Ulema Council (Majelis Ulama Indonesia or MUI) is the country’s highest Islamic institution and has the authority to comply with Sharia law. Announce The use of cryptocurrency is a holy place, and Islamic law prohibits Muslims from using it.
What do you think about the Indonesian central bank’s desire to issue central bank digital currency to counter cryptocurrencies? Please let us know in the comments section below.
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