Bank Indonesia executives said that CBDC is a tool to counter Bitcoin

According to Bank Indonesia, the Central Bank Digital Currency (CBDC) is a digital version of the national currency introduced in response to the growing adoption of cryptocurrencies and will become an important tool to combat encryption.

The Central Bank of Indonesia is considering launching a digital rupiah to “fight” cryptocurrencies like Bitcoin (Bitcoin), Juda Agung, Assistant Governor of Bank Indonesia, said at a recent parliamentary meeting.

“CBDC will become one of the tools against cryptocurrency. We assume that people will find CBDC more credible than encryption. CBDC will become part of the effort to resolve the use of cryptocurrency in financial transactions,” Agung statement, According to Bloomberg’s report on November 30.

The official pointed out that despite the severe impact on the financial system, cryptocurrencies such as Bitcoin are currently traded with commodity futures and are regulated by the Ministry of Trade.

The news was released shortly after the National Ulema Council (MUI), the highest Islamic academic institution in Indonesia, and reportedly Found that cryptocurrencies like Bitcoin are illegal, Or forbidden by Islamic teachings. One of the East Java branch of MUI issued a statement earlier Think of the use of cryptocurrency as a holy place Late October.

As previously reported, the Indonesian government has taken a different stance on crypto regulation.although Prohibited cryptocurrency payments in 2017, Local authorities chose to keep cryptocurrency transactions legal. In April 2021, it was reported that the Commodity Futures Trading Regulatory Agency (Bappebti) of the Indonesian Ministry of Trade Announce It is planned to launch a government-backed cryptocurrency exchange in the second half of 2021.

While maintaining a mixed stance on cryptocurrencies, Indonesian regulators are increasingly focusing on potential CBDCs. In May, Perry Warjiyo, Governor of the Bank of Indonesia, announced plans to launch Digital Indonesian Rupiah as a legal payment tool In Indonesia.

related: Singapore CBDC focused on retail to hedge privately issued stablecoins

A CBDC like China’s digital renminbi is clearly designed to curb the adoption of cryptocurrencies, which is one of its main features. Indonesia is not the only one who believes that CBDC can help the government fight against cryptocurrencies. In mid-November, Elvira Nabiullina, Governor of the Russian Central Bank, stated that CBDC should be a good choice Let the government replace decentralized cryptocurrencies like Bitcoin.