The Central Bank of Indonesia intends to fight Bitcoin (BTC) with its own CBDC as they feel that CBDC is more reliable than BTC or other alt-coins.
The Bank of Indonesia aims to compete with Bitcoin using its own central bank digital currency, since it sees CBDC as a superior financial instrument to private cryptocurrencies, as reported in today’s Bitcoin news.
The Central Bank of Indonesia intends to fight bitcoin by releasing some type of local digital currency in collaboration with a financial institution that feels the CBDC is more reliable than BTC or other alt-coins.
The Central Bank of Indonesia reasons for creating a central bank digital currency
The Central Bank of Indonesia signaled its intention to create a central bank digital currency earlier this year when Governor Perry Warjiyo stated it was on the way without specifying a debut date.
During the COVID-19 outbreak, the bank discovered that shifting residents from cash to digital payments and government-supervised and managed CBDCs would be a smart solution for currency conversion.
According to current sources, the Central Bank of Indonesia has another reason to issue a digital rupee in order to battle cryptocurrencies, which might have a significant impact on the country’s financial network. As the bank’s brilliant governor, Judah Agung, said, CBDC is a more reliable option than ETH or BTC:
“CBDC will be one of the tools against crypto. We assume that people will find CBDCs more reliable than cryptocurrencies. The CBDC will be part of an effort to address the use of cryptocurrencies in financial transactions. ”
Establishment of a specialized digital asset exchange
Meanwhile, the government aims to establish a specialized digital asset exchange by the end of 2021, citing the fact that it has over 7 million crypto investors and that its trading value surpasses $30 billion, which is less than double that of locals who are in the 2020 investment range of weeks.
Previously, the National Ulema Council, the highest organization of Islamic scholars, declared all cryptocurrency operations to be “haram,” or banned.
According to Asrorun Niam Soleh, the rejection derives from the belief that bitcoin and altcoins bring a great deal of instability, stakes, and uncertainty. According to the chairman of MUI’s fatwa committee, digital assets can be exchanged like commodities if they adhere to Sharia law and offer comparative benefits.
Indonesia is the most populous Muslim country, with a population of 273 million people, and changes there could have a significant impact on the local crypto environment.
