Bank Indonesia Prepares to Issue Digital Rupiah as Legal Tender for Digital Payments – Finance Bitcoin News

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Bank Indonesia Prepares to Issue Digital Rupiah as Legal Tender for Digital Payments – Finance Bitcoin News
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The Central Bank of Indonesia is working to issue a wholesale digital rupiah. The new currency aims to be the only legal tender for digital transactions in the country, and regulators also want to ensure it can be exchanged across borders.

Digital rupiah concept expected by the end of the year

Indonesian monetary authorities are advancing a project to issue a digital version of the national fiat for wholesale transactions. Governor Perry Wajiyo revealed in a briefing on Thursday that it plans to release a conceptual design for the future digital rupiah by the end of 2022. He was quoted as saying by Bloomberg, who detailed:

The principles of the digital rupiah will be the same as banknotes, which will be the only legal tender for digital transactions in Indonesia.

Bank Indonesia has been researching the possible launch of its central bank digital currency (CBDC) since last year. The report states that its main purpose is to be ahead of the global adoption of cryptocurrencies as a payment method.

Monetary authorities in other countries in the region are also considering implementing blockchain technology to improve transfers and settlements, including central banks in the Philippines and Australia, which are also considering wholesale digital currencies.

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Last fall, Australia, Singapore, Malaysia and the Republic of South Africa announced trials of CBDCs for cross-border payments. The central banks of these countries said the goal of their collaboration is to develop a shared platform for international transactions using digital currencies issued by different countries.

Bank Indonesia is currently exploring technology options with its peers and is working on the cybersecurity capabilities of the digital rupiah. Once issued, the CBDC will be distributed to large banks and payment service providers, who in turn will sell the digital rupiah to smaller banking institutions for various retail transactions.

This is done to avoid potential disintermediation of banks, especially in times of crisis, or the risk of households choosing to deposit money directly with a “risk-free” central bank, explained Wellian Wiranto, an economist at OCBC Bank in Singapore. Banks rather than commercial banks.

tags in this story

Bank Indonesia, CBDC, CBDC, Central Bank, Crypto, Cryptocurrency, Cryptocurrency, Digital Currency, Digital Currency, Digital Rupiah, Indonesia, Indonesia, Fiat, Payment, Payment, Item, Rupiah

Do you expect Bank Indonesia to issue its wholesale digital currency by the end of the year? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Munklin

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