According to reports, the Republic of Indonesia Bank, the country’s financial institution, is considering issuing central bank digital currency (CBDC) to combat the use of cryptocurrencies. “CBDC will become one of the tools against cryptocurrency. We tend to assume that individuals will realize that CBDC is more trustworthy than encryption,” said the vice president of the aforementioned financial institution.
The central bank sees CBDC as a tool to “fight cryptocurrency”
Juda Agung, the deputy governor of Bank Indonesia, the country’s financial institution, talked about cryptocurrency and financial institution digital currency (CBDC) in his parliament “fit and correct test”, becoming the deputy governor of the financial institution.
The Assistant Governor explained that in the Republic of Indonesia, crypto assets are listed on artifact futures and are regulated by the Ministry of Trade. However, he emphasized that they need to have a significant impact on the country’s national economy, and elaborated:
“CBDC will become one of the tools against cryptocurrency. We tend to assume that individuals will realize that CBDC is more trustworthy than encryption. CBDC will become part of the processing of cryptocurrency used in currency transactions.”
According to data from the Ministry of Trade, as of Jmonth, about 7.4 million Indonesians have invested in crypto assets, which is double the previous year. Their crypto transactions only destroyed about 478.5 trillion rupees (33.3 billion U.S. dollars). The Indonesian government is advancing its plan to establish an avid cryptocurrency exchange.
At the same time, Indonesia’s Ulama Committee (Majelis body Indonesia or MUI) is a high-level Muslim institution in the country that has the authority to abide by the Sharia law.