Indonesia is all set to make CBDC for bank use by the end of this year -

The Central Bank of Indonesia is working on releasing the conceptual design of its digital currency.
The currency can be used by the end of this year.

The Central Bank of Indonesia is all set to release the conceptual design of its digital currency. Perry Warjiyo, Governor of Bank Indonesia, publicized on Thursday that the digital currency issued by the Central Bank of Indonesia can be used by the people by the end of 2022.

According to Bloomberg, digital currency will behave the same way as paper money does. People will be able to use the currency for digital transactions by the end of this year. It will be considered legal as the only legal digital currency in Indonesia will be Digital Rupiah.

According to Warjiyo, firstly, the digital currency will be available for large banks and various payment gateways, and then they will sell it to smaller banks for market transaction purposes. Also, we are willing to make the use of digital rupiah across- the- board, he further added.

The Central Bank of Indonesia is making the part of cybersecurity associated with CBDC strong and coordinating with the financial systems of other countries.

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Working paper of Bank Indonesia

According to the working paper of Bank Indonesia, Friedrich Hayek, who is a Nobel Laureate in Economics, suggests that the government should not dominate the circulation and issuance of money. Digital currency can end the dominance of money circulation from the Central Bank. These types of currencies can lead to a revolution in the traditional payment system.

At the time of writing, more than 600 digital currencies are in use over the internet and significantly have borderless systems.

Furthermore, the paper highlights stablecoins and says, “ The birth of stablecoins is a matter of worry for the authorities of Indonesia as it is believed that it may lead to financial problems. This is a reason for the Central Bank to think of developing the Central Bank Digital Currency, which will eventually suit the needs and characteristics of consumers of the country.

Conclusion

The development of the Digital Rupiah will help the consumers in many ways, and also the security over the internet will also be maintained. So, there will be less fear of cyber fraud.