Bank Indonesia is preparing to issue digital rupiahia
Bank Indonesia is in the pre-launch phase (pre-release) of the digital currency rupiah and is looking for platforms that best suit their needs.
As the world sees an increase in digital transactions during the Covid-19 pandemic, many countries are starting to take a closer look at the adoption of central bank digital currencies (CBDCs).
According to a study by the Bank for International Settlements (BIS), more than 85% of central banks are actively studying CBDCs, while 60% are experimenting with the technology and 14% have started testing these projects. Digital currencies are intended to help modernize these financial systems and significantly accelerate international transactions.
Today Bank Indonesia (BI) announced its transition to a national digital currency as the latest in a long list of central banks.
Bank Indonesia decided to create and introduce a digital rupiah as one of its top priorities after seeing a surge in digital transactions. According to the report, the frequency of transactions on the digital banking platform increased 60.3% in April to over 570 million BI data shows that the value also increased by 46% to about 3.114 trillion rupees or about 217 billion USD.
Governor Perry Warjiyo said: “BI plans to issue a digital central bank currency, a digital rupiah, in the future. […] as a legal digital payment instrument in Indonesia. Of course, we’re also looking at options for the technology we’re going to use. “
Asia is becoming the hot zone for CBDC pilot programs
Indonesia isn’t the only Asian central bank to announce its intention to work towards a digital currency solution.
It wasn’t until May 24 that the South Korean central bank announced its intention to conduct a series of tests on the functionality and usability of CBDCs. The trials are scheduled to begin in August and end around mid-2022. Interestingly, the Bank of Korea stated that their plan is not precisely to issue the coin, but rather to review its usefulness.
China is another Asian country that has turned its hat on to CBDC studies. China has done most of the testing and has begun expanding its testing program. The testing is not only technical, but is also intended to raise awareness of the project itself. To attract the testers’ attention, each participant receives a 15% discount for every 100 yuan spent on the experiment.
Japan also recently announced a committee dedicated solely to studying the prospects of a government-sponsored digital currency.
Of course, Asia isn’t the only region showing interest in creating its own digital currency. The UK, Georgia, Norway and even the US with some banks are at different levels of research, planning and testing.
According to Beincrypto