BI Still Discussing Digital Rupiah Currency Plan

DOCK BETWEEN

JAKARTA - Bank Indonesia (BI) plans to issue rupiah currency in digital form that has been proclaimed for a long time.

Bi Governor Perry Warjiyo said the design and distribution plan of digital currencies is under discussion.

"In that context, BI plans to issue a digital central bank, digital currency rupiah, as a legal means of payment in the Republic of Indonesia," Perry was quoted as saying by Antara on Tuesday, May 25.

Perry ensured that the utilization and use of this digital currency would be almost similar to banknotes and debit and credit-based money that have been running.

Currently, he added, the central bank is also reviewing the implementation of monetary, macroprudential and payment system policies using digital currencies.

In addition, BI is also considering digital currency technology that will be used in view of the central bank's experience in other countries including the formulation of the platform to be used.

"BI does this because it has the authority to issue legal tenders in Indonesia according to the Constitution, which is described in the BI Law and the Currency Law," perry said.

Currently, the use of digital currencies such as cryptocurrencies is on the rise, although the instrument does not yet have adequate consumer protection, has neither a fundamental basis nor a clear regulation and smells of speculation.

Meanwhile, Law No. 7 of 2011 on Currency states that BI is given the task and authority to manage rupiah currency starting from the stages of planning, printing, expenditure, distribution, revocation and withdrawal, up to the destruction.

Rupiah management needs to be done well in supporting monetary stability, financial system stability, and smooth payment system.