Indonesia plans to launch its own central bank digital currency (CBDC) as the country faces a digital payments boom during the COVID-19 pandemic, Reuters has learned, citing Bank Indonesia (BI) Governor, Perry Warjiyo. According to the watchdog data, transaction frequency of digital banking in Indonesia increased by 60.3% to more than 570 million times in April.
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"BI plans in the future to issue a central bank digital currency, digital rupiah...as a legal digital payment instrument in Indonesia," Warjiyo said during a streamed news conference.
However, it remains unknown which platform BI will use for its digital rupiah. Currently, the central bank is examining how the CBDC might help it meet its objectives on monetary policy, Warjiyo added.
As iHodl earlier reported, Indonesia is exploring the possibility of imposing a tax on cryptocurrency-related profits. Notably, Neilmaldrin Noor, spokesman for the country's tax office, said the measure is still being discusses. However, if it comes into force, all profits related to digital assets would become subject to a special tax.
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