The central bank of Indonesia is reportedly considering launching a central bank digital bank currency (CBDC) to fight Bitcoin. This comes shortly after the National Ulema Council (MUI), Indonesia’s top Islamic scholarly body declared cryptocurrencies like Bitcoin to be <a href="https://www.cryptoknowmics.com/news/crypto-trade-is-haram-rules-the-largest-muslim-nations-religious-council/">"haraam"</a> or banned by Islam law considering the country has one of the world’s largest Muslim populations.
<h2><strong>Indonesia Wants to Fight Bitcoin By Launching CBDC</strong></h2>
Juda Agung, an assistant governor of Bank Indonesia said that the monetary authority is considering launching a digital rupiah to address the negative effects of crypto trading on the financial system, Bloomberg <a href="https://www.bloombergquint.com/onweb/bank-indonesia-mulls-digital-currency-as-a-way-to-fight-crypto" target="_blank" rel="nofollow noopener">reported</a>. The official noted that cryptocurrencies are currently traded alongside commodity futures and regulated by the trade ministry despite severe impacts on the financial system.
<blockquote><em> “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,”</em> Agung stated</blockquote>
In May, the governor of Indonesia's central bank, Perry Warjiyo announced plans to launch a digital rupiah as a legal payment instrument <a href="https://www.cryptoknowmics.com/news/finders-poll-shows-vietnam-indonesia-and-india-lead-crypto-adoption/">in the country.</a>

In November, the National Ulema Council (MUI), Indonesia’s authority on Shariah compliance, said that cryptocurrencies are forbidden and declared as “haram”. However, MUI head of religious decrees Asrorun Niam Soleh explained that crypto could be traded as a commodity if it demonstrates a clear benefit and abides by the Shariah law.
<h2><strong>Mixed Stance on Crypto Regulation</strong></h2>
The Indonesian government has taken a mixed stance on crypto regulation. Despite banning crypto payments back in 2017, local authorities have opted to keep cryptocurrency trading legal. In April, Indonesia’s Commodity Futures Trading Regulatory Agency of the Ministry of Trading announced plans to launch a government-backed crypto exchange by the end of this year.

As of July, over 7.4 million Indonesians invested in cryptocurrencies, doubling from last year while transaction value surged to $33 billion, Bloomberg noted.

Indonesia Wants to Launch CBDC to Fight Bitcoin: Report

The central bank of Indonesia is reportedly considering launching a central bank digital bank currency (CBDC) to fight Bitcoin.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Indonesia Wants to Launch CBDC to Fight Bitcoin: Report

Top Picks