Central Bank of Indonesia: “digital rupee is safer than cryptocurrency”

Judah Agung, Deputy Governor of the Bank of Indonesia, believes that the country’s population will consider the state digital currency more reliable than cryptocurrency.

Juda Agung said the Central Bank of Indonesia intends to issue a digital rupee that will be used as legal tender in the country.

“The state digital currency will become one of the tools in the fight against cryptocurrency. We assume that people will find the digital currency of the Central Bank more reliable than cryptocurrency, ”Agung said.

He explained that in Indonesia, cryptocurrencies are regulated by the Ministry of Commerce. However, they have a significant impact on the country’s financial system. Agung said the government’s digital currency will be part of an effort to tackle the problem of using cryptocurrency in financial transactions.

As of July 2021, about 7.4 million Indonesians have invested in cryptocurrencies, according to the Indonesian Ministry of Commerce. This is twice as much as last year. Cryptocurrency transactions totaled approximately Rs 478.5 trillion ($ 33.3 billion).

In 2018, the Indonesian Futures Market Observatory (Bappebti) recognized cryptocurrencies as exchange commodities that can be traded in the futures market. In April of this year, Bappebti proposed a tax on all cryptocurrency transactions on regulated exchanges domestically.

Indonesian Trade Minister Muhammad Luthfi said in September that the country would not ban cryptocurrencies, but would focus on regulating them. However, last month, the National Council of Ulema Indonesia (MUI) declared cryptocurrency haram – banned for devout Muslims.