DDHK. ORG – Digital Rupiah currency is the focus of development carried out by Bank Indonesia. Not long ago, Banks Indonesia (BI) published the money development design Digital currency. This is summarized in the White Paper (WP).
This WP outlines the formulation of a central bank digital currency (CBDC) for Indonesia by considering the principles of benefits and risks. This WP is the first step of the Garuda Project, a project that underlies various initiatives to explore various digital rupiah architectural design options.
Quoted from the page Compass, Responding to the plan to issue digital rupiah, Chairperson of the Association of National Commercial Banks (Perbanas) Kartika Wirjoatmodjo explained that the banking industry will support digital rupiah. As for the role of banking, it will become a distributor.
"We support. It will be wholesale and retail and banks will become distributors," said Kartika at the 50th ASEAN Banking Council Meeting (ABC) 2022 press conference in Labuan Bajo, West Manggarai, East Nusa Tenggara (NTT), Friday (2/12/2022).
Even so, the banking industry is still waiting for technicalities related to the digital rupiah. In addition, cooperation will be carried out with the central bank regarding details related to technology to security aspects.
"We will discuss the pattern and technology. We are working with BI on the details and related security as well," said the Deputy Minister of SOEs.
Kartika revealed, with the digital rupiah, the use of currency would decrease. There will be an increase in the more practical use of digital rupiah.
According to Kartika, the use of banknotes and coins tends to be expensive. Therefore, he sees that slowly the use of paper and metal money will shift to digital rupiah.
"The use of paper and metal money is costly (expensive), especially small ones (in denominations) in Indonesia, such as Rp. 500 (notes) in metal, slowly but surely will retire and shift to digital," said Kartika.
Separately, in his press release, BI Governor Perry Warjiyo stated, digital rupiah is one of the payment system policies to accelerate digitalization.
"Digital rupiah will be implemented in stages, starting from wholesale CBDC for issuance, destruction and transfers between banks. Then it was expanded to the monetary operation and money market business model, and finally to the end-to-end integration of digital rupiah wholesale and digital rupiah retail," said Perry.
The issuance of digital rupiah WP is expected to be a catalyst for the development of CBDC designs in the future, so that implementation can be in accordance with the context and characteristics of the policy.
The central bank believes that the benefits of CBDCs are being able to maintain rupiah sovereignty in the digital era, including supporting digital economic and financial integration and opening opportunities for more equitable and sustainable financial inclusion. [DDHK News]
