Bank of Indonesia Prepares to Issue Digital Rupiah for Digital Payments
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Digital Rupiah Concept to be Issued by Year End
The national fiat will soon be issued in digital form by Indonesia's monetary authority for use in wholesale transactions. Governor Perry Warjiyo announced in a briefing that it intends to release the conceptual design of the future digital rupiah by the end of 2022. Since last year, Bank Indonesia has been researching the potential rollout of its central bank digital currency (CBDC). According to the paper, its primary goal is to foresee the widespread use of cryptocurrencies as payment.
Central Banks of Australia and the Philippines
The central banks of Australia and the Philippines, two additional countries in the area, have investigated wholesale digital currencies as part of their considerations for using blockchain technology to facilitate transfers and settlements. Last fall, trials of cross-border payments utilizing CBDCs were launched by Australia, Singapore, Malaysia, and the Republic of South Africa. According to the central banks of these nations, their collaboration aims to create shared platforms for cross-border transactions using various state-issued digital currencies.
With partners, Bank Indonesia is currently looking into technological possibilities and developing the digital rupiah's cybersecurity characteristics. After being released, the CBDC will be given to central banks and payment processors, selling digital rupiahs to smaller financial organizations for use in various retail transactions.