Bitcoin (BTC)Cryptocurrency

Indonesia’s Central Bank Aims to Fight Bitcoin with CBBC

The idea of decentralization or accepting cryptocurrencies is lost in many Asian countries. China is the strongest competitor of decentralization, and, therefore, private cryptocurrencies have already issued a severe crackdown against their trading and mining within the region. This clears out the fact that China will not be siding with cryptocurrencies at all.

Other countries that are against Bitcoin or at least share the same perspective as China, even in a minor capacity, are South Korea and Indonesia. Indonesia believes that developing a CBDC of their own fiat currency will prove to be a combating tool against private cryptocurrencies such as Bitcoin.

The project of developing their own CBDC token for the sake of fighting private crypto is still underway, and it is an initiative that is being taken very ecstatically by the Central Bank of Indonesia. Earlier this year, the Central Bank of Indonesia did present the bill to launch their own central bank digital currency, which will be used as an alternative to private cryptocurrencies within the region.

During the COVID-19 pandemic, it was noted that many Indonesians switched from cash and fiat currencies to digital payments, and many of them did perform transactions using Bitcoin. It is believed that a huge chunk of the economy is being given away to these private cryptocurrencies, which is why it is better if Indonesia comes with its own CBDC token and takes advantage of the situation itself.

There is another common perception within Indonesia that cryptocurrencies are bad for the growth of a nation and can disrupt the financial framework a country has developed all those years long. That is why this must be combated all the way, and the issuance of a CBDC token is the right way to do so. The idea is that the central Bank of Indonesia will be putting CBDC into the hands of every local and will direct them that they should use this digital token to perform online transactions rather than using Bitcoin, Ether, or any other cryptocurrency for that matter.

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