Bank of Indonesia wants to fight Bitcoin with its own central bank digital currencies as it considers CBDCs a superior financial tool to private cryptocurrencies as we can see more about it today in our bitcoin latest news.
The Central bank of Indonesia wants to fight Bitcoin with its own CBDCs by issuing a digital form of the national currency with the financial institution believing that CBDCs would be more credible than BTC or other altcoins. Bank of Indonesia displayed intentions to launch a central bank digital currency earlier this year when governor Perry Warjiyo asserted that it is on its way without talking too much about a specific launch date. Back then, the bank noted that during the COVID-19 pandemic, locals switched from cash to digital payments, and a CBDC monitored and controlled by the authorities will be the best option for the monetary transition.
According to the recent reprots, the Bank of Indonesia has another reason to issue a digital rupia which is to fight crypto that can cause a huge impact on the nation’s financial network. Juda Agung as an Assitant Governor at the bank added that a CBDC is a more reliable option than ETH or BTC:
“A CBDC would be one of the tools to fight crypto. We assume that people would find CBDC more credible than crypto. CBDC would be part of an effort to address the use of crypto in financial transactions.”
In the meantime, the government intends to create a dedicated digital asset exchange by the end of 2021 because it has more than 7 million crypto investors while the transaction value surpassed $30 billion and about twice fewer locals invested in the space in 2020. a few weeks ago, the National Ulema Council which is the top Islamic Scholar Body showed a negative stance on crypto by declaring all operations “haram” or forbidden. Asrorun Niam Soleh said that the rejection ignites from the idea that bitcoin and altcoins bring a lot of haram, wagering, and uncertainty with them. The MUI’s Fatwa Commission Chairman said that the digital assets can be traded as a commodity if obeys the Shariah law and shows strogn benefits.
With a population of 273 million, Indonesia is the most populated Muslim nation and the developments could have a huge effect on the local crypto ecosystem.
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