- Indonesia announced its forthcoming central bank digital currency.
- The CBDC will be used to buy services and products in the Metaverse.
- Indonesia is the biggest country in Southeast Asia with a population of 276.4 million.
The central bank of Indonesia announced that its forthcoming central bank digital currency (CBDC) — the digital rupiah — will have additional utility aside from replacing its physical fiat in the future.
According to a report by Reuters, the digital rupiah will be used to purchase products or services within Metaverse platforms. The report did not clarify which metaverse the country is referring to.
Indonesia also revealed the infrastructure of the CBDC last week. As per the central bank, the digital rupiah will have a similar framework as mainstream CBDCs, ensuring smooth exchange and other transactions. What is more, Indonesia hinted that they are working toward an agreement among central banks regarding the exchange rate used for CBDCs.
At the moment, the digital rupiah is not yet implemented or tested. However, the country is planning to roll out the adoption in stages. In detail, this will begin with selling the CBDC in bulk.
Next, the central bank will develop and implement a business model for the CBDC for regular monetary operations and the money market. Finally, Indonesia will release the CBDC into use among its citizens.
Indonesia is the largest country in Southeast Asia. In 2021, the country had an estimated population of 276.4 million.
Meanwhile, Indonesia bans the use of mainstream cryptocurrencies as a means of payment. Interestingly, the country permits crypto transactions in the commodity futures market, recognizing the latter as a legitimate investment.
For further information on the digital rupiah, readers can refer to the official documentation of Project Garuda.
