Bank of Indonesia, the central bank of the country, has revealed its plan to issue a central bank digital currency (CBDC) to fight back against bitcoin.
The Indonesian central bank plans to release a digital version of the country’s currency shortly. To “fight” private digital assets, that’s what it’s designed to be used for. The bank thinks that a CBDC will be more “stable” compared to bitcoin and other cryptocurrencies.
Bitcoin is not legal in Indonesia. The central bank has issued a notice to that effect because they want to regulate the use of cryptocurrencies in order to avoid them becoming tools for money laundering and tax evasion.
Central bank digital currency (CBDC) proposals were announced earlier this year by Bank Indonesia (BI), the country’s central bank. In May, Perry Warjiyo, CEO, said that the project was already in progress. Despite this, he did not provide a release date.
BI discovered that during the COVID-19 outbreak, people moved from cash to digital payment. If you’re looking for an ideal solution, the institution suggests a CBDC that the government oversees.
Bloomberg recently reported that Bank Indonesia now has another motive to produce digital rupees, in addition to the previous one. Thus, he hopes to “combat” cryptocurrencies, which he believes negatively influence the national financial network and must be “fought.” An associate governor of the bank, Juda Agung, has said that a CBDC is a more dependable alternative to bitcoin, ether, and the rest of the private digital assets.
CBDC is one of the techniques that might be used to combat cryptocurrencies. We believe that CBDCs will be seen as more trustworthy than cryptocurrencies. The establishment of a CBDC would be part of a larger attempt to address the usage of cryptocurrencies in financial transactions.he said.
Meanwhile, the Indonesian government plans to establish a particular digital asset market by the end of 2021. More than 7 million crypto investors live in the nation, and they have already transacted for more than $30 billion. In contrast, twice as many individuals invested in the blockchain business in 2020.