Indonesia’s central bank has unveiled plans for a digital rupiah currency that will use blockchain technology.
Jarkata is following the trend set by many central banks around the world that are developing central bank digital currencies (CBDCs).
Bank Indonesia’s (BI) governor Perry Warjiyo said, while laying out the central bank’s policy guidance for 2023, that the digital rupiah cements the apex bank’s role as the sole authority to issue legal tender including a digital currency.
Indonesia currently bans the use of cryptocurrencies as a means of payment, but allows transactions of the digital assets in the commodity futures market for investment purposes.
Warjiyo said the digital rupiah’s business model for monetary operations and money market will be developed and a retail CBDC will be developed for everyday use.
Indonesia’s digital banking has grown exponentially over the past few years with transactions in 2022 set to grow 30% to 53,144 trillion rupiah ($3.38 trillion), according to BI’s data.