Bank Indonesia (BI) Governor Perry Warjiyo has said he is optimistic the Central Bank Digital Currency (CBDC), or digital rupiah, will be able to increase national economic efficiency.
“We will circulate the digital rupiah through digital blockchain technology and distributed ledger technology (DLT) so it will really be efficient,” Warjiyo said while announcing the outcome of the monthly meeting of the central bank’s board of governors in Jakarta on Thursday.
Banks connected to the DLT system, in the context of digital rupiah wholesale, will also feel the efficiency while making transactions in the money market since they will not incur transaction fees, he added.
The digital rupiah will also make retail trade efficient since it can lower transaction costs, Warjiyo said.
Transactions in retail trade will also be conducted very fast thanks to BI Fast, Standard National Open API1 Payment (SNAP), and Quick Response Code Indonesian Standard (QRIS) systems, he informed.
“These all will increase efficiency and the economic ecosystem,” he said, adding he believed the digital rupiah would bring much benefit, which will eventually spur economic growth in future.
However, it is undeniable that the use of digital rupiah will have risks related to technology and cyber security, he noted.
“Several risks will emerge so we will consider its development,” he remarked.