Despite Bank Indonesia (BI) prohibiting the use of cryptocurrency as a payment instrument, the central bank is considering issuing digital rupiah. Assistant to BI executive director for payment systems Susiato Dewi said the digital rupiah will be trialled this year in an effort to help make the payment system more efficient.
The physical banknotes we currently use may be converted into digital money. However, no country has released such money yet.
Executive director for payment systems, Bank Indonesia
She said that the digital currencies issued by BI and other central banks will be different from current cryptocurrencies because digital money will be based on the certain values of assets.
She also added that the amount of the digital money will be based on the current currency system, and will take into account the inflation rate.
Previously, BI Governor Agus Wartowardojo said that using Bitcoin as a payment and transaction instrument violated Law No. 7/2011 on currency, which defines the rupiah as the only official transaction and payment instrument in the country.