Listen! This Is A Series Of Reasons Why BI Needs And Must Use Digital Rupiah

Bank Indonesia (Photo: Doc. Antara)

JAKARTA - Governor of Bank Indonesia (BI) Perry Warjiyo gave an explanation regarding the central bank's plan to release digital rupiah in the near future. According to him, there are three main reasons that are considered the most important for the presence of this modern payment tool.

First, Bank Indonesia is the only state institution in accordance with the law that has the authority to issue currency.

"Second, Bank Indonesia wants to serve the wider community whose needs are currently growing," he said in a talk show on the Bioma Series (BI Bersama Masyarakat), on Monday, December 5.

Third, continued Perry, digital rupiah is a medium of cooperation with various central banks of other countries which are summarized in the Central Bank Digital Currency (CBDC) scheme.

"At the G20 yesterday, we agreed on what the CBDC concept will be like, how can this encourage financial inclusion, and also how CBDC can support state and central bank cooperation," he said.

Especially the third point, Perry explained that in the future digital rupiah will have its own exchange rate that can be compared to digital currencies from other countries.

"Later there will be an exchange rate, there will be an exchange rate and it can be compared to digital dollars, digital euros, digital ringgit, digital baht and so on," he said.

VOI noted that digital rupiah will be distributed by Bank Indonesia to the public through a number of large national banks that will act as dealer banks.

Meanwhile, the last stage that BI has now taken is the inauguration of the White Paper (WP) which outlines the formulation of CBDC for Indonesia by taking into account the principles of benefits and risks.

The development of the central bank's digital currency in the future is not an option, but a necessity. The central bank still needs to explore and test it to anticipate the development of digital currencies in the future," said BI Governor Perry Warjiyo.