Central Bank Of Indonesia Intends To Use Its CBDC To Fight Private Cryptocurrencies

The central bank of Indonesia contemplates introducing a CBDC being a financial instrument to confront private cryptocurrencies. The financial organizations of the country consider that an incredible competition would be provided by a CBDC to the altcoins as well as Bitcoin (BTC).

Indonesia, as well as the CBDC endeavours thereof

BI (Bank Indonesia), the central bank of the country, showed the intention thereof for the launch of a CBDC (Central Bank Digital Currency) in the earlier phase of this year. Perry Warjiyo, the Governor of the bank, in May, asserted that no particular date had been determined yet for the launch of the country’s CBDC.

At that time, it was mentioned by the bank that in the period of COVID-19, the natives had made a shift from cash to digital currency-based payments. In such a scenario, a CBDC (being monitored as well as controlled on behalf of the officials) would provide a suitable option for the transition of the monetary system, as opined by the organization.

As per the latest coverage conducted by Bloomberg, there is another reason for Bank Indonesia to introduce a digital rupiah for the battle against crypto, causing a considerable impact on the financial network of the nation. One among the bank’s Assistant Governors, Juda Agung, mentioned that a CBDC tends to be a more trustable choice instead of Bitcoin, Ether, or any other among the private virtual assets.

He added that with the provision of a CBDC, the responsive instruments would be made available, which would be more reliable rather than cryptocurrencies. CBDC would be included in an endeavour to deal with the utilization of cryptocurrencies’ finance-related transactions. Meanwhile, the government of Indonesia also has the intensions to develop a dedicated exchange of digital assets till 2021’s end as there are above 7M crypto investors within the country, whereas the transaction value thereof has crossed $30B.

In Indonesia, crypto is Haram

Some weeks back, the MUI (the National Ulema Council), being the prominent entity containing the Islamic scholars, pronounced extremely negative viewpoint against the crypto by asserting that all the crypto-related activities across the industry are labelled as forbidden or Haram.

It was stated by Asrorun Niam Soleh that the respective rejection stems from the concept that altcoins, as well as Bitcoin all, are linked with wagering, uncertainty, and harm. Nevertheless, the Fatwa Commission Chairman of MUI elaborated that the trading of these assets can be done as commodities if the Shariah law is complied with by it and points out a considerable benefit.