The Central Bank of Indonesia is actively exploring the potential of its own future digital currency for international payments. The Central Bank plans to publish the CBDC concept by the end of the year.
Indonesian Central Bank Governor Perry Warjiyo announced that the regulator is preparing to launch a state stablecoin that can be used by banks for cross-border settlements and payments. The digital Indonesian rupiah will work on the same principle as fiat money, which is now considered the only legal currency for any financial transactions in Indonesia, Varjiyo specified.
Now the Central Bank has focused on the cybersecurity features of the digital rupee. The regulator is cooperating with major banks and payment companies from other countries to explore the technological possibilities of CBDC. The regulator expects that commercial banks will also use the state cryptocurrency to make retail payments with small amounts.
“It is important that banks maintain their role as an intermediary in the provision of financial services. It is necessary to eliminate the possible risks when organizations or individuals prefer to go directly to the central bank, rather than to ordinary banks, especially during a crisis,” explains Wellian Wiranto, an economist at the Singapore-based financial corporation Oversea-Chinese Banking Corp.
Indonesia’s central bank began exploring the possibility of launching its own digital currency last year. Officially announced goal: to prevent the mass adoption of cryptocurrencies in the country. The introduction of the digital rupee is designed to speed up payments and make them more economical, the regulator is sure.
Source: Bits
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