According to the Central Bank of Indonesia, Central Bank Digital Currencies (CBDCs), digital versions of national currencies introduced in response to the growing use of cryptocurrencies, will be an important tool in the fight against cryptocurrencies.
Bank of Indonesia Deputy Governor Jodha Agung said at a recent parliamentary session that the Central Bank of Indonesia is considering launching a digital rupee to “fight” cryptocurrencies such as Bitcoin (BTC).
“CBDC will be one of the tools in the fight against cryptocurrency. We assume that people will find that CBDCs are more reliable than cryptocurrencies. ” Agung said, according to a Bloomberg report released on Tuesday, “Digital currency from commercial banks will be part of an effort to address the issue of currency use,” Agung said, according to a Bloomberg report released on Tuesday. encrypted financial transactions.
The official noted that cryptocurrencies such as bitcoin are currently traded with commodity futures and are regulated by the Ministry of Commerce, despite the serious impact on the financial system.
This news comes shortly after the National Council of Ulemas (MUI), the most important Islamic scientific body in Indonesia, discovered that cryptocurrencies such as Bitcoin are haram or banned principles of Islam. The East Java branch of one of the MUIs issued a statement declaring the use of cryptocurrency banned at the end of October.
As previously reported, the Indonesian government has taken a controversial stance regarding the regulation of cryptocurrency. Despite the ban on cryptocurrency payments in 2017, local authorities decided to keep cryptocurrency trading legal. It is reported that in April 2021, the Commodity Futures Trading Regulatory Authority at the Indonesian Ministry of Commerce announced plans to launch a state-sponsored cryptocurrency exchange in the second half of 2021.
Indonesian regulators maintain a controversial stance on cryptocurrency, and are increasingly looking at a central bank’s digital currency. In May, Bank of Indonesia Governor Perry Fargio announced plans to launch the digital rupee as a legal tender in Indonesia.
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Central bank currencies such as the Chinese digital yuan appear to limit the use of cryptocurrency as one of its main features. Indonesia alone does not believe that central banks’ digital currencies can help governments fight cryptocurrencies. In mid-November, Bank of Russia CEO Elvira Nabiullina said central banks’ digital currencies should be a good option for governments to replace decentralized cryptocurrencies such as bitcoin.