Bank Indonesia is working on the issuance of wholesale digital rupiah. The new currency is intended to be the only fiat currency for digital transactions in the country, but regulators also want to be able to exchange across borders.
Digital Rupiah concept expected by the end of the year
Indonesian financial authorities are working on a project to publish a digital version of the country’s Fiat for wholesale transactions. Governor Perry Warziyo will announce the conceptual design of the future digital rupiah by the end of 2022, which was revealed at a briefing on Thursday. Quoted by Bloomberg, he details:
The principle of digital rupiah is the same as banknote, which is the only legal tender for digital transactions in Indonesia.
Bank Indonesia is the central bank’s digital currency (CBDC) From last year. Its main purpose is to precede the global adoption of cryptocurrencies as a payment method, the report said.
Financial authorities in other countries in the region are also considering implementing blockchain technology to improve transfers and payments, including the central banks of the Philippines and Australia, which are also considering wholesale digital currencies.
Australia, Singapore, Malaysia, South Africa publication Last fall, CBDC tried cross-border payments. The central banks of these countries have stated that the goal of their cooperation 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 counterparts and is working on the cyber security features of Digital Rupiah. Once issued, the CBDC will be distributed to large banks and payment service providers, selling digital rupiah to smaller banking institutions for a variety of retail transactions.
Wellian Wiranto, an economist at Singapore’s Oversea-Chinese Banking Corp, said this was to avoid the possibility of banks not being mediated, especially in times of crisis, and the risk of households choosing banks directly to “risk-free” central banks. I explained that it would be done. A bank, not a commercial bank.
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