Bank Indonesia Says CBDC Digital Money Will Influence The Public Money Stock

Illustration. (Photo: Doc. Antara)

JAKARTA - Deputy Governor of Bank Indonesia (BI), Dody Budi Waluyo, ensured that his party did not want to rush to issue rupiah currency in digital form (central bank digital currency/CBDC).

The reason is that the release of the virtual transaction tool needs to be accompanied by several in-depth studies because it involves the domestic macroeconomic system. Not to mention the potential risks posed to conventional currencies today.

"In terms of macro-financial impact, of course, we have to weigh it because the CBDC is very fast to affect the movement of currency stocks circulating in the community", he said in a press conference for the G20 Finance Track meeting which was broadcast virtually from Bali, Friday, December 10.

According to Dody, the digital rupiah is considered to have a large enough impact if it is not managed carefully. This is because movements that occur in the virtual realm in real-time allow large amounts of money to be transferred at one time. This could result in disruption to liquidity conditions.

"Without strict monitoring, there are no records, we will not be able to manage the risk because the movement is done digitally", he said.

To note, Indonesia raised the issue of central bank digital currency in the G20 Presidency this time. It is hoped that this forum will encourage the implementation of comprehensive regulations, especially in digitizing the payment system.