Indonesia could launch its own CBDC to “fight” private cryptocurrencies

The Bank of Indonesia considers CBDC as an exceptional financial tool that could help the nation combat private cryptocurrency adoption in the region.

Indonesia could launch its own CBDC to “fight” private cryptocurrencies

Photo by Robert Lens from Pexels

The central bank of Indonesia is mulling over launching its own CBDC to resist adopting private cryptocurrencies. The financial institution considers CBDCs as a “credible” alternative to private cryptocurrencies as central bank digital currency can be regulated by the administrators.

Indonesia may launch its own CBDC

Bank Indonesia (BI) which is the central bank of Indonesia had long expressed its inclination to launch a CBDC that can be easily regulated by the authorities. Governor Perry Warjiyo of Indonesia had earlier in May confirmed the launch of CBDC that may be introduced sometime soon.

The bank had also acknowledged the fact that the locals have switched to digital payments due to the COVID 19 pandemic, and in such cases, launching a CBDC might be a credible way to substantiate digital payments since they can be easily monitored and controlled by the banking authorities.

A recent Bloomberg report has stated that the central bank of Indonesia is now considering CBDC an option to “fight” private cryptocurrencies and help launch digital “rupiah” which the bank considers a more reasonable payment alternative than Bitcoin and Altcoins combined.

“A CBDC would be one of the tools to fight crypto. We assume that people would find CBDC more credible than crypto. CBDC would be part of an effort to address the use of crypto in financial transactions.” added Juda Agung, deputy governor at Bank Indonesia.

Agung further emphasized that crypto assets have had a significant impact on the country’s financial system and have regarded CBDC’s a better way to assist the citizens to help transition towards adopting a steady digital alternative.

Posted In: CBDCs

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