Indonesia Planning To Launch Its Own “CBDC” To Counter Bitcoin

SNIPPETS

  • The Indonesian government wants to regulate digital assets, but the Islamic authority opposes them because they are dangerous, according to the Islamic authority.
  • The creation of a central bank digital currency (CBDC) aims to stifle Indonesia’s burgeoning cryptocurrency acceptance.
  • Before the end of the year, Indonesia intends to launch its own cryptocurrency exchange.

The Indonesian central bank is planning to produce a digital rupee to “combat” private cryptocurrencies. According to a top bank official, following the Islamic authority’s decision to ban all cryptocurrency operations.

Indonesia To Allocate CBDC Soon

On Tuesday, November 30th, Assistant Governor of the Central Bank Juda Agung noted that crypto assets are now traded alongside commodities futures, which are controlled by the commerce ministry.

Bitcoin magazine one of the news firm mockingly wrote on Twitter to Indonesia that, “good luck to that”

Cryptocurrency trading has a significant impact on the Indonesian financial system, according to Agung, who was appearing in parliament while being considered for a position as deputy governor of the central bank.

“One of the measures to combat crypto would be a CBDC,” the official noted.

Bank Indonesia has been studying a scheme to create a central bank digital money since the beginning of the year (CBDC).

“We believe that CBDC is more trustworthy than cryptocurrency.

CBDC would be a part of a larger attempt to address crypto’s use in financial transactions, according to Agung.

Bank Indonesia had previously taken a strong position against cryptocurrencies, deeming them unsuitable for use as legal money.

As a result, the issuing organisation advised buyers and sellers not to purchase, sell, or trade them.

The country taking step towards their own CBDC aspired by turkey’s CBDC as Rupiah reached from 1 USD to over 14000.

Cryptocurrencies Are Considered “Haram” Or Forbidden In Islam

Crypto assets are considered “haram” (prohibited) by religious academics. The legends say that they cause ambiguity and harm, and that they are good for gambling.

The Islamic Council is the entity in charge of enforcing Sharia in Indonesia, which has the world’s biggest Muslim population.

The Indonesian government, for its part, revealed plans earlier this year to establish its own cryptocurrency exchange by the end of 2021.

The goal is to keep track of all bitcoin transactions that occur in the country.

The government prefers to regulate cryptocurrencies rather than outright ban them like China did, although Islamic leaders oppose crypto-asset trading.

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