National Cryptocurrency Planned By Bank Indonesiabr>
Bank Indonesia, the country’s central bank, is planning to create a state-issued cryptocurrency called “Digital Rupiah.”
Susiato Dewi, the assistant deputy executive director of Bank Indonesia’s payment systems department, said that the country’s physical banknotes may be converted into digital money. She added that the Digital Rupiah would be trialled this year in an effort to help make the payment system more efficient.
Dewi noted that central banks in other countries had also begun trials to anticipate the possible use of cryptocurrencies for inter-country transactions. Dewi assured that the Digital Rupiah will be different from existing cryptocurrencies because it would be based on the certain values of assets. She said the central bank would take into account the inflation rate affecting Indonesia’s currency as it determines the number of Digital Rupiah to release into circulation.
Earlier this month, the central bank issued a warning against selling, buying, or trading cryptocurrencies such as bitcoin. Central bank governor Agus Wartowardojo said that using bitcoin as a payment and transaction instrument violated Law No. 7/2011, which designates the rupiah as the only official transaction and payment instrument in Indonesia.