Bank of Indonesia joins the efforts of global central banks as it plans to launch a digital rupiah currency. Governor Perry Warjiyo confirmed the news and informed that the institution is yet to decide which platform to use.
CBDC in Indonesia
During the COVID-19 pandemic, the island nation of Indonesia saw a significant boom in digital transactions. The country plans to strengthen its efforts towards cashless transfers by issuing a central bank digital currency, as Reuters reported.
The bank’s governor – Perry Warjiyo – asserted that CBDC is on its way but did not reveal a specific date of completing the project:
”BI plans in the future to issue a central bank digital currency, digital rupiah…as a legal digital payment instrument in Indonesia.”
He added that the institution is now exploring how the e-rupiah will fulfill its goal on monetary policy and payment systems and also determine the abilities of the financial infrastructure:
”We’re also, of course, considering our options on the technology that we will use.”
The rupiah is the only legally accepted currency for payment in Indonesia, and the nation’s central bank will conduct the upcoming CBDC the same way it treats banknotes and card-based transactions.
The Crypto Environment in Indonesia
The biggest economy in Southeast Asia saw a massive increase in crypto users in the past months, following the recent rally of most digital assets. According to a report, Indodax – the largest crypto exchange platform in Indonesia – registered more than 700 000 new members only for the first four months of 2021. The total number increased to three million.
However, as CryptoPotato reported earlier this month, the country’s officials contemplated a plan to tax trading with Bitcoin and all altcoins. Neilmaldrin Noor, a spokesman at Indonesia’s tax office, asserted that the future implementations were still at a discussion phase, and no changes have yet been administered. Additionally, he explained that taxation is vital for the economy:
”It is important to know that… if there is a profit or capital gain generated from a transaction, the profit is an object of income tax. So the taxpayer who receives capital gain has to pay the tax and report it.”