Bank Indonesia, the country’s central bank, is reportedly considering issuing a central bank digital currency (CBDC) to combat the use of cryptocurrency. “A CBDC would be one of the tools to fight crypto. We guess people would find the CBDC more credible than crypto, ”said a central bank deputy governor.
Central bank sees CBDC as tool to ‘fight crypto’
Juda Agung, deputy governor of Bank Indonesia, the country’s central bank, spoke about cryptocurrency and central bank digital currency (CBDC) during his parliamentary ‘aptitude and suitability test’ to become vice-governor of the central bank.
He said the Bank of Indonesia wanted to issue a digital rupee to be used as legal tender to fight cryptocurrency, Bloomberg reported, noting that the central bank had been looking into the matter since the start of the year.
In Indonesia, crypto assets are traded alongside commodity futures and are regulated by the Ministry of Commerce, the deputy governor explained. However, he stressed that they have a significant impact on the country’s financial system, elaborating:
A CBDC would be one of the tools to fight crypto. We guess people would find the CBDC more believable than crypto. The CBDC is reportedly part of an effort to combat the use of crypto in financial transactions.
According to the Commerce Ministry, around 7.4 million Indonesians invested in crypto assets in July, doubling from last year. Their crypto transactions totaled around 478.5 trillion rupees ($ 33.3 billion). The Indonesian government is moving forward with plans to set up a dedicated crypto exchange.
Meanwhile, the Indonesian Ulama Council (Majelis Ulama Indonesia or MUI), the country’s main Islamic body that holds the authority over Sharia compliance, recently declared the use of the haram cryptocurrency, banned by Islamic law for Muslims.
What do you think about the fact that the central bank of Indonesia wants to issue a central bank digital currency to fight against crypto? Let us know in the comments section below.
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