Bank Indonesia Wants To Fight BTC With Its CBDC: Report

Bank Indonesia wants to fight Bitcoin with its own central bank digital currencies as it views CBDC as a superior financial instrument to private cryptocurrencies as we can see more of it in our latest Bitcoin news today.

The Central Bank of Indonesia wants to counter bitcoin with its own CBDCs by issuing some form of local digital currency with a financial institution that believes the CBDC is more reliable than BTC or other alt-coins. The Central Bank of Indonesia showed its intention to launch a central bank digital currency earlier this year when Governor Perry Warjiyo confirmed it was on the way without saying too much about an introduction date. At the time, the bank found that during the COVID-19 pandemic, moving locals from cash to digital payments and government-overseen and controlled CBDCs would be a good choice for currency conversion.

According to recent officials, the Central Bank of Indonesia has yet another reason to issue a digital rupee to combat cryptocurrencies that could have a major impact on the country’s financial network. Judah Agung, as the bank’s talented governor, added that CBDC is a more reliable option than ETH or BTC:

“CBDC will be one of the tools against crypto. We assume that people will find CBDCs more reliable than cryptocurrencies. The CBDC will be part of an effort to address the use of cryptocurrencies in financial transactions. ”

In the meantime, the government intends to create a dedicated digital asset exchange by the end of 2021 as it has over 7 million crypto investors while its trading value exceeds $ 30 billion and less than double that of locals who are in those in 2020 Invest range of weeks. Previously, the National Ulema Council, the leading body of Islamic scholars, took a negative stance on cryptocurrencies by declaring all activities to be “haram” or forbidden. Asrorun Niam Soleh says the rejection stems from the idea that bitcoin and altcoins bring a lot of chaos, stakes and uncertainty. The chairman of MUI’s fatwa committee said that digital assets can be traded as commodities if they follow Sharia law and have relative advantages.

With a population of 273 million, Indonesia is the most populous Muslim country and developments could have a huge impact on the local crypto ecosystem.