I. An Overview of Rupiah Digital
Bank Indonesia is planning to launch a Central Bank Digital Currency (“CBDC”) or Rupiah Digital (“Rupiah Digital”). Rupiah Digital is the digital form of Rupiah and will have the same use as physical currency, electronic money and card-based payment instruments (such as debit or credit card). Rupiah Digital is a form of Indonesia’s legal tender that holds the same value and is fully interchangeable with other forms of Rupiah.
The main distinction between Rupiah Digital and electronic money or card-based payment instruments is on their issuance. Rupiah Digital will be issued exclusively by Bank Indonesia as the Central Bank, whilst electronic money and card-based payment instruments are issued by commercial banks and/or financial service institutions.
To develop Rupiah Digital, in 2022 Bank Indonesia released a White Paper (“White Paper”) outlining the concept of Rupiah Digital and serving as a medium of communication to the public regarding its development. In 2023, this was followed by a Consultative Paper (“Consultative Paper”) which was put together to get inputs and opinions from both public and private stakeholders on the design, potential impacts, and benefits of Rupiah Digital, in alignment with present and future needs.
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