Central Bank of Indonesia considering launching own CBDC

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

Bank Indonesia BI, which is the central bank of Indonesia, has long expressed its inclination to launch a CBDC that can be easily regulated by the authorities. Governor Perry Warjiyo of Indonesia has earlier confirmed the launch of CBDC that may be introduced sometime in the near future.

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

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

A CBDC would be one of the tools to fight criptocurrency. We think CBDC will be more credible than criptocurrency. CBDC is part of an effort to address the use of cryptocurrencies in financial transactions. Juda Agung, deputy governor at Bank Indonesia, said.

Agung emphasized that cryptocurrencies have had a significant impact on the country's financial system and regarded CBDC as a better way to help the citizens transition towards a steady digital alternative.