CBDC: Indonesian Central Bank To Rollout The Digital Rupiah

Since the year 2020, Indonesia could be said to have witnessed a huge shift in transactions in the country. According to the statistics available, the percentage of digital transactions conducted in Indonesia has since doubled, and experts even predict that a whopping 30% will top the numbers.

And as such, it did not come as a surprise when the Indonesian central bank announced that it is about to roll out the digital rupiah, which will be built on the blockchain framework. 

Indonesia About To Roll Out The Digital Rupiah

This is the 21st century, and with decentralised finance spreading sporadically, banks are rushing to catch up and somewhat stake some sort of claim in the evolving technology. 

This has been the case with a large number of countries that have come out to launch their different variations of digital currencies. 

It did not come as a shock when the Indonesian central bank announced on Wednesday, November 30th, that the country would be witnessing the launch of the digital Rupiah. This is beautiful: Indonesia has over the years witnessed a large boom in the digital banking sector of the country.

Though the use of cryptocurrencies as legal tender is still currently not allowed, the recent development points to the apparent truth that maybe the country is not as closeminded to the evolving sector as it might appear.

Governor Perry Warjiyo, who made the announcement when talking about the bank’s proposed policy agenda for 2023, emphasised that the Indonesian Government aims to retain the exclusive authority to issue legal tender, whether physical or not.

According to him, the whole process will happen in piecemeal and will follow due process. The digital rupiah will be issued in wholesale, then transferred between banks before a business model is devised and it is eventually used in retail.

Is Indonesia On Its Way To Adopting Crypto?

Over the years, Indonesia has been particularly close-minded toward the adoption of crypto as a legal tender. However, with the new central bank digital currency (CBDC), it appears that the country is probably not as against it as it appears.

Although the government has continued to place emphasis on its exclusive authority to devise a legal tender, it appears that Indonesia is just right on the evolving sector track.

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