Jumat, Juni 4, 2021

Issuance of Central Bank Digital Currency Still Requires In-Depth Studies

The Governor of Bank Indonesia ("BI"), Perry Warjiyo, has recently stated that BI will issue Central Bank Digital Currency ("CBDC") and its utilization will be similar to the utilization of paper money as well as debit and credit-based money. Mr. Warijoyo said that BI is currently conducting a study concerning the implementation of monetary, macroprudential and payment systems using digital currency, including the implementation of digital currency in other central banks within other countries.
Responding to the said plan, Puteri Anetta Komarudin as a member of the Commission XI at the House of Representatives, warned that such plan shall be conducted carefully and required an in-depth assessment since CBDC will represent the symbol of state sovereignty controlled by the central bank which is part of its monetary obligations.
The young politician has further suggested that BI conducts initial benchmarking with other central banks to understand CBDC. In addition, she also asserted that in preparing digital currency, its legality aspect must be observed carefully since Law No. 7 of 2011 on Currency only regulates rupiah as the only applicable currency within Indonesia. She concludes that BI should also hold communication with other stakeholders, including the Financial Services Authority (Otoritas Jasa Keuangan – "OJK") and the Indonesian Deposit Insurance Corporation (Lembaga Penjamin Simpanan/LPS) regarding this matter.
Meanwhile, Yusuf Rendy, an economist at the Center of Reform on Economics has suggested BI to conduct potential-risks mapping before issuing CBDC. Other than OJK, Mr. Rendy urged that communication must also be held with the Ministry of Communication and Informatics to guarantee the digital technology infrastructure as well as the Ministry of Finance on the implementation of digital currency.
For more on this story, see Hukumonline: “Perlu Kajian Mendalam Bila BI Ingin Terbitkan Mata Uang Digital”.

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The Governor of Bank Indonesia ("BI"), Perry Warjiyo, has recently stated that BI will issue Central Bank Digital Currency ("CBDC") and its utilization will be similar to the utilization of paper money as well as debit and credit-based money. Mr. Warijoyo said that BI is currently conducting a study concerning the implementation of monetary, macroprudential and payment systems using digital currency, including the implementation of digital currency in other central banks within other countries.
Responding to the said plan, Puteri Anetta Komarudin as a member of the Commission XI at the House of Representatives, warned that such plan shall be conducted carefully and required an in-depth assessment since CBDC will represent the symbol of state sovereignty controlled by the central bank which is part of its monetary obligations.
The young politician has further suggested that BI conducts initial benchmarking with other central banks to understand CBDC. In addition, she also asserted that in preparing digital currency, its legality aspect must be observed carefully since Law No. 7 of 2011 on Currency only regulates rupiah as the only applicable currency within Indonesia. She concludes that BI should also hold communication with other stakeholders, including the Financial Services Authority (Otoritas Jasa Keuangan – "OJK") and the Indonesian Deposit Insurance Corporation (Lembaga Penjamin Simpanan/LPS) regarding this matter.
Meanwhile, Yusuf Rendy, an economist at the Center of Reform on Economics has suggested BI to conduct potential-risks mapping before issuing CBDC. Other than OJK, Mr. Rendy urged that communication must also be held with the Ministry of Communication and Informatics to guarantee the digital technology infrastructure as well as the Ministry of Finance on the implementation of digital currency.
For more on this story, see Hukumonline: “Perlu Kajian Mendalam Bila BI Ingin Terbitkan Mata Uang Digital”.

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