Indonesia will launch a digital rupee

26.05.2021 |

Indonesia’s central bank announced its intention to launch its own digital currency. The head of the national regulator said that the digital rupee will receive the status of a means of payment on a par with existing payment and transfer methods. So far, no exact launch date has been announced. The central bank is currently exploring different technologies for issuing CBDCs that can meet all the needs of people and businesses in the country.

To this decision the regulator, in no small measure, was prompted by last year’s statistics. According to the report, non-cash payments accounted for about 43% of all transactions in the country, which is 60% more than in 2019. According to the central bank, this happened because of restrictions related to the coronavirus, as well as citizens’ fear of getting infected when transferring cash and the growth of online commerce.

Indonesia is one of those countries that have gone the way of a partial ban on cryptocurrencies on its territory. Like Russia, for example, free digital assets cannot be paid for in everyday life because they are not legal tender. However, bitcoin and other coins are recognized as assets and financial transactions with them are allowed. Also, cryptocurrencies, or, more precisely, profits from actions of sale and purchase of digital assets, are subject to taxation under general rules.