The Indonesian Central Bank Is Going to Issue a CBDC

The Indonesian Central Bank Is Going to Issue a CBDC 

Reuters reports that Indonesian Central bank is going to issue a CBDC to make the transactions faster. The digital Indonesian rupee will be a legal asset for payments. However, they give no information about the time when it will go live. This idea appeared due to the pandemics of COVID-19 and the growing demand for the cashless financial operations.

At the moment, the Central Bank learns more about the technology and evaluates the readiness of the country’s financial system to implement a CBDC successfully. They spoke about issuing it back in 2018, but started the work on making it happen only now. The amount of cashless transactions grew 60% in April; clearly the demand keeps growing.

Cryptocurrencies aren’t allowed as the means of payment in the country but crypto trading isn’t illegal. Indonesian authorities spoke about the taxation of the industry earlier but this initiative is still in the process of discussion.

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