Bank Indonesia Explains Crypto Asset's Effects on Economy, Financial Stability
12 July 2022 16:19 WIB
TEMPO.CO, Jakarta - Bank Indonesia (BI) Governor Doni Primanto Joewono at a G20 side event on the digital economy in Badung, Bali, said that a regulatory framework is needed to overcome the issue of stability in relation to crypto-assets.
“Crypto-assets can potentially help emerge new risks that could affect economic, monetary, and financial system stability,” said Don at the event touted ‘advancing digital economy and finance’ on July 12, Antaranews reported.
However, he argued that crypto also houses the potential to develop inclusion and financial system efficiencies. Digitization transforms people’s activities and general life aspects, including financial activities evident amid the Covid-19 pandemic, which helped advance the growth of crypto assets.
He believes crypto assets have motivated central banks in numerous countries to explore designs and the issuance of a Central Bank Digital Currency (CBDC). This is why, he added, most central banks in the world are starting to conduct research and tests to find the perfect setup for each country’s characteristics.
“A number of central banks are carefully continuing to study the possible effects of the CBDC, including Indonesia,” he explained.
Bank Indonesia is constantly studying the CBDC and aims to issue a white paper on the development of the digital Rupiah.
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