Cryptocurrency News

Bank of Indonesia joins central bank digital currency race

Bank of Indonesia is one of the latest global central banks to announce state digital currency schemes amid a major spike in digital payments in the country.

Governor Perry Warjio said on Tuesday that Indonesia’s central bank plans to launch a digital rupiah currency as a legal payment instrument in Indonesia. Reports.

The official said that Rupiah is the only legally accepted currency for payment in the country so far, and BI will try to regulate digital Rupiah in the same way it controls cash and card-based transactions.

According to Warzio, BI is now studying the potential benefits of digital rupiah, including its impact on monetary policy and payment systems, as well as an assessment of financial infrastructure readiness. He said the bank is also assessing potential technology options for the creation of a central bank digital currency. Speaking at a streamed news conference, the official did not specify on an exact timeline for digital rupiah development.

At the time of writing, BI has not explicitly released an official statement regarding its CBDC plans. According to a notice on an official website of the bank, BI is about to happen decide Regarding the issuance of digital rupiah in the near future, as necessary preparations have been completed. “BI is still focusing on digital transformation as part of the Indonesia payment system Blueprint 2025,” the statement said.

According to the report, Indonesia’s entry into the global CBDC race comes in response to a major upsurge in digital banking, with digital transaction frequency exceeding 60% on an annual basis. Digital payments represent one of the country’s main policy priorities after witnessing a strong growth in online transactions in Indonesia during the COVID-19 epidemic.

Latest news follows Indonesian financial authorities Announcement of potential tax schemes for capital gains Originated from crypto last week. Earlier, the Commodity Futures Trade Regulatory Agency of Indonesia was also considering putting one Tax on all cryptocurrency transactions Happening on domestic crypto exchanges.

Indonesia as a country known for its mixed approach to regulating crypto Put Full ban on cryptocurrency payments in 2017, despite keeping crypto trading legal.