Damaging The Influence Of Crypto, Bank Indonesia Finalizes The Digital Rupiah Concept

Illustration (Photo: Doc. Antara)

JAKARTA – Bank Indonesia (BI) stated that the existence of crypto assets was the background for the monetary authority in exploring the design and issuance of Central Bank Digital Currency (CBDC) or digital currency.

BI Deputy Governor Doni Joewono said that the majority of the world's central banks have started conducting research and experimental stages according to the characteristics of their respective countries.

According to him, industrial support and input are also important inputs for the central bank in planning the CBDC design. In addition, various central banks are cautious and continue to study the possible impact of the CBDC, including Indonesia.

"We at BI continue to study CBDC and at the end of this year are at the stage of issuing a white paper on the development of Digital Rupiah," he said in a press statement on Tuesday, July 12.

Doni added that the exploration of CBDC issuance was carried out based on six objectives, namely providing risk-free digital payment instruments using central bank money, mitigating non-sovereign digital currency risks, expanding the efficiency and stages of the payment system, including cross border.

Then, expand and accelerate financial inclusion, provide new monetary policy instruments, and facilitate the distribution of fiscal subsidies.

"The issuance of a CBDC must be ensured that it does not disrupt monetary and financial system stability, can be integrated and implemented," he said.

For information, digitalization changes the way humans carry out activities in various aspects of life, including financial activities. Digitization and the COVID-19 pandemic have made crypto assets grow even faster.

Crypto assets have the potential to promote inclusion and efficiency of the financial system, but on the other hand they also have the potential to create new sources of risk that can affect economic, monetary and financial system stability.