Bank Indonesia Mulling Issuing Digital Currency to Discourage Cryptocurrencies

Bank Indonesia is considering issuing a central bank digital currency (CBDC) in order to discourage the use of cryptocurrencies.

Why it Matters?

According to Juda Agung, an Assistant Governor of Bank Indonesia, Bank Indonesia wishes to issue a digital rupiah to be used as legal tender and assumes that people would find the CBDC to be more credible. In Indonesia, crypto assets are traded along with commodity futures and are regulated by the Ministry of Trade. Relatedly, the Indonesian Ulema Council (MUI), Indonesia’s top Islamic body that holds the authority on Shariah compliance, recently declared the use of cryptocurrencies as Haram.

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