Bitcoin Is Not A Legal Payment Tool, BI Governor Plans To Make Digital Rupiah

Bank Indonesia issues digital rupiah (Antara)

JAKARTA - Bank Indonesia (BI) is reportedly designing a digital rupiah currency. This step was taken after China reportedly made its own digital Yuan to compete with bitcoin currencies.

BI itself will prepare a Central Bank Digital Currency (CBDC) so that it can sustain economic digitization. In addition, CBDC is also expected to be able to stem the popular cryptocurrency.

Perry Warjiyo, who serves as Governor of Bank Indonesia, answered questions raised by the owner of CT Corp, Chairul Tanjung. Perry explained that BI is indeed trying to issue digital rupiah. The incident took place in a CNBC Indonesia Economic Outlook 2021 program.

"We are currently formulating the Central Bank Digital Currency (CBDC) which BI will issue and circulate with banks and fintech on a wholesale and retail basis," said Perry Warjiyo Friday, February 26.

The BI governor also emphasized that RI only uses one currency in accordance with the 1945 Constitution.

"All payment instruments using coins, paper and digital use Rupiah and the authority is in BI. Digital currency is the authority at BI, we explained that bitcoin is not a legal means of payment, ”he said.

For information, CBDC is digital money that is under the control of the central bank. The digital rupiah currency is a legal means of payment and can function as a substitute for currency.

Digital rupiah currency or CBDC developed by the Republic of Indonesia itself has a concept that is not the same as crypto currencies such as bitcoin. Bitcoin itself can be obtained through mining or mining which is done using a highly capable computer.

Bitcoin is also more decentralized. This means that the cryptocurrency cannot be controlled by any central bank or bank because transactions take place on a peer-to-peer basis, from sender directly to recipient.

Previously, the value of bitcoin had increased after Elon Musk bought up the cryptocurrency. This was also followed by other influential people and well-known companies.