The Central Bank Digital Currency (CBDC) will gradually replace flat money or money in the form of paper or metal.
Central Bank Digital Currency (CBDC) is a digital currency issued and controlled by the central bank, and used as a legitimate means of payment to replace cash. CBDC will act as a digital representation of a country's currency.
CBDC already fulfills the 3 basic functions of money, namely as a store of value, a medium of exchange, and a unit of account. In Indonesia, CBDC will also be introduced under the name Digital Rupiah.
Deputy Governor of Bank Indonesia (BI) Juda Agung stated that the proof of concept for digital Rupiah as CBDC or digital currency is currently in the process of conceptual design.
"Regarding CBDC, currently at Bank Indonesia, we are in the process of conceptual design for its proof of concept using simulations from internal parties of Bank Indonesia," said Juda Agung in Jakarta, Thursday as quoted from Antara.
He said that they continue to carry out a series of pilot projects and tests related to the development of CBDC.
Juda stated that BI will observe the development of the domestic and global economies, the development of CBDC implementation globally, as well as the experiences of other countries that have implemented their digital currencies as considerations in developing the digital Rupiah.
"So, we will first observe (the implementation of CBDC) like China, which has already done so, and also countries in Europe like Sweden, before we actually implement it later," said Juda.
He stated that after its launch, digital Rupiah will replace the roles of paper and metal money that have been used by society.
He conveyed that the transition from the use of paper and metal money to digital money will be done gradually.
However, the possibility of implementing Indonesia's digital currency may not be realized this year.
"I don't think so yet, we are still continuing with piloting," said Juda.
IN
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