By Taylor - Crypto Retailer - 01/12/2021
In recent news, the bank of Indonesia looks to create and mint a central bank digital currency (CBDC). The adoption for buying crypto-based assets has been growing drastically, however there are many places that worry about the risks behind crypto. In this case, Islamic authorities are opposing its citizens buying cryptocurrency. Reportedly, the authority members are highly concerned of the dangers and risks of investing in volatile assets. However, despite the worries, the bank of Indonesia wishes to enter the crypto field and establish control over digital assets. One way the bank plans on entering the crypto field is by first releasing a CBDC. A CBDC operates similarly to a stablecoin, the main difference is that a CBDC is regulated. In the future, Indonesia hopes to launch its own cryptocurrency exchange platform.
Reportedly, the Indonesian central bank is digitalising the national currency, the rupee, in an attempt to avoid buying unsafe and private cryptos. The decision to produce a digital rupee came shortly after the Islamic authorities had banned all types of crypto-based operations and services. Assistant Governor of the Indonesian Central Bank, Juda Agung, stated that people can only access cryptocurrencies through futures trading which are currently being regulated by the commerce ministry. In a statement, Agung mentioned that one of the main paths to take in order to combat crypto would be through releasing a CBDC. Reportedly, the bank of Indonesia has since been researching the best methods in order to create and establish a new national cashless coin.