BI Will Bring Up A Digital Rupiah, This Is The Reason And When Will It Be Released

BI will issue a Digital Rupiah (Photo: Capture BI Youtube screen)

YOGYAKARTA - Bank Indonesia (BI) will issue a Central Bank Digital Currency (CBDC) or Digital Rupiah which can be used as a transaction tool for the Indonesian people. BI launched a white paper for mining the Digital Rupiah on November 30.

Filianingsih Hendarta, Assistant Governor of BI (Head of the Payment System Policy Department), revealed that the progress of developing the Digital Rupiah is still in its early stages. BI itself also hopes that this digital money can be released soon.

"We'll see the stages as soon as we can. If we're not ready, we'll wait. Yes, hopefully, it won't take too long," said Filianingsih at the BIRAMA Talkshow:iving the Road Towards Digital Rupiah at BI Building, Jakarta on Monday (5/12).

However, Filianingsih still has not stated when the certainty of the time for the Digital Rupiah was released. He admitted that he did not want to say sweet promises that could not be as expected.

Perry Warjiyo, Governor of Bank Indonesia (BI) conveyed the reasons for making the Digital Rupiah. Here are the reasons for the issuance of digital money in Indonesia.

Perry said BI is the only state agency authorized to issue digital rupiah. The issuance of the Digital Rupiah is regulated in Law Number 7 of 2011 concerning Currency. The presence of digital currencies other than the Digital Rupiah legally means that it is invalid in Indonesia or cannot be a means of transaction.

"Because BI is the only state institution, according to the law that has the authority to issue digital currency called digital rupiah," Perry said at the BIRAMA Talkshow.

The second reason for the issuance of the Digital Rupiah is to serve the public in carrying out transaction needs in the digital era. People can choose to use physical money and digital money in carrying out transaction needs.

"The 60% of them are millennials, especially our children and grandchildren, they need digital payment tools. So this is BI's second reason," Perry said.

The next reason for the issuance of digital money is because it can strengthen Indonesia's cooperation with international institutions. Perry revealed that BI will cooperate with central banks from other countries to formulate a Digital Rupiah exchange rate with other currencies.

"So that we can continue to carry out international cooperation. Therefore, in the future there will be exchange rates with Digital Dollars, Euro, Ringgi, Thai Bath, and others," Perry said.

BI has not yet disclosed exactly when the Digital Rupiah was issued. However, his party said that the development of the Digital Rupiah was still in its early stages. This stage starts with the Wholesale of Digital Rupiah for issuance, destruction, and interbank transfers.

BI will determine banks and non-bank institutions that are considered worthy of being wholesale. Digital rupiah platforms will be distributed through blockchain systems and Distributed Ledger Technologies.

Many people have asked the difference between the Digital Rupiah and crypto or cryptocurrency. Perry said that the Digital Rupiah is the only digital currency that can be used as a means of payment in Indonesia.

Meanwhile, crypto cannot be a means of payment in Indonesia. Crypto only applies in the form of assets. If digital money has been officially released by BI, there will be three types of legal payment instruments in Indonesia, namely banknotes, credit cards, other bank account-based cards, and Digital Rupiah.

That is the explanation regarding BI's plan to issue a Digital Rupiah. The certainty of the time for issuing digital money has not been disclosed in more detail by BI. Digital rupiah with banknotes is in principle the same as a means of payment, which distinguishes only digital forms.