Bank Indonesia is preparing a central bank digital currency, the CBDC, last week announced by Governor Perry Warziyo.In the post Instagram. The bank said it is investigating and evaluating the CBDC as one aspect of its sovereign currency. Central bank movements show that Indonesian financial authorities are laying the foundation for more advanced financial innovation as Indonesians are accustomed to cashless transactions.
Central banks have made three considerations in their Instagram post: Digital currencies act as legitimate payment instruments, become technology-based, and support banks in policies that include control of the money supply.
Bank Indonesia said this new development will take time as the CBDC requires investment in infrastructure such as cybersecurity measures. Bank Indonesia conducts assessments to better understand the benefits and potential of the CBDC, including areas such as design, technology and risk mitigation. We are in close contact with other central banks to keep track of the progress of this issue.