Governor of Bank Indonesia, Perry Warjiyo, said that the central bank considered to issue digital currency amid the proliferation of global crypto-currency developments - Photo: Special

JAKARTA (TheInsiderStories) – Governor of Bank Indonesia (BI), Perry Warjiyo, said that the central bank considered to issue digital currency amid the proliferation of global crypto-currency developments. According to Law Number 7 of 2011 concerning Currency, there is only Rupiah use as the exchange rate in Indonesia.

“We formulate the Central Bank Digital Currency and will circulate with banks and FinTech on a whole shale and retail basis,” he told in a virtual seminar on Thursday (02/25).

To run the planned, he said, the policymakers will coordinate with other central banks. Crypto assets such as Bitcoin, Ethereum, Ripple, Litecoin, IOTA, Dash, and Dogecoin are currently became a trend. In November last year, the global central banks starting to be interested in this virtual currency, and succeeded in formulating a framework for how they could make their own virtual money.

The Bank for International Settlements and seven central banks including the Federal Reserve, European Central Bank and Bank of England published a report outlining some of the key requirements for a central bank digital currency or Central Bank Digital Currency. Among the recommendations, the instrument would eventually be ‘recognized’, but not replace cash and other forms of legal tender.

In addition, they regulated the digital currencies should also be more supportive than damaging to monetary and financial stability. In Indonesia, Bitcoin and digital gold officially traded in Indonesia since 2019. Commodity Futures Trading Regulatory Agency (CoFTRA) has issued four regulations related to crypto-currencies and digital gold after existed in Indonesian market.

The crypto and digital gold trade regulated in regulation Number 2 Year 2019 concerning the Implementation of the Commodity Physical Market on the Futures Exchange. Then, Regulation Number 3 Year 2019 concerning Commodities that Can Be Subjected to Futures Contracts.

And, Sharia Derivative Contracts or Other Derivative Contracts Traded on the Futures Exchange, regulated in the Regulation Number 4 Year 2019 concerning Technical Provisions for the Implementation of the Digital Gold Physical Market on the Futures Exchange. The instruments also arranged in the Regulation Number 5 of 2019 concerning Technical Provisions for the Implementation of the Crypto Asset Physical Market on the Futures Exchange. 

The regulation followed Trade Minister Regulation Number 99 Year 2018 concerning General Policy for the Implementation of Crypto Asset Trading and Trade Minister Regulation Number 119 Year 2018 concerning General Policy on the Trading of Physical Market for Digital Gold on the Futures Exchange.

Bitcoin has been existed in Indonesian market since 2011. In 2016, BI forbids the instrument use as transaction but as commodity it was still blurry. Crypto currencies reached its peak in Indonesia in 2017. Digital gold trading trend came later in the last couple years.

Some e-commerce players such as Tokopedia and Bukalapak sell the instrument. While, IndoGold, Orori, Tamasia, EmasDigi are some other smartphone applications to purchase gold. 

Written by Editorial Staff, Email: theinsiderstories@gmail.com