CBDC is a tool to battle Bitcoin, according to a Bank of Indonesia executive

[ASEAN NOW Content Team]

 

"CBDC would be a part of an effort to address the usage of crypto in financial transactions," said Juda Agung, assistant governor of the Central Bank of Indonesia.

According to the Central Bank of Indonesia, central bank digital currencies (CBDC), digital copies of national currencies developed in response to increased cryptocurrency acceptance, will be a crucial weapon for combatting crypto.

At a recent legislative meeting, Bank of Indonesia assistant governor Juda Agung indicated the central bank is considering releasing a digital rupiah to "combat" cryptocurrencies like Bitcoin (BTC).

 

"One of the weapons for combating crypto would be a CBDC."
CBDC, we believe, is more trustworthy than cryptocurrency.
According to a Bloomberg article published Tuesday, CBDC would be a part of an effort to address the use of cryptocurrency in financial transactions.

Despite their grave consequences for the financial system, cryptocurrencies such as Bitcoin are currently traded alongside commodities futures and controlled by the trade ministry, according to the source.

 

The news comes after Indonesia's leading Islamic scholarly body, the National Ulema Council (MUI), purportedly declared cryptocurrencies like Bitcoin to be haram, or forbidden, under Islamic teachings.
In late October, the East Java chapter of one of MUI released a statement declaring the use of cryptocurrency haram.

The Indonesian government has maintained a mixed approach on cryptocurrency legislation, as previously reported.
Despite the fact that municipal governments banned bitcoin payments in 2017, they have decided to keep cryptocurrency trading lawful.
Indonesia's Ministry of Trading's Commodity Futures Trading Regulatory Agency reportedly revealed plans to build a government-backed crypto exchange in the second half of 2021 in April 2021.

 

While Indonesian regulators have a mixed attitude about cryptocurrency, they are increasingly considering a CBDC.
Governor Perry Warjiyo of the Bank of Indonesia revealed plans to introduce a digital rupiah as a legal payment instrument in Indonesia in May.