Bank Indonesia (BI) plans to issue a digital rupiah currency or Central Bank Digital Currency (CBDC).

Governor of Bank Indonesia (BI) Perry Warjiyo said there were several considerations by BI in issuing CBDCs. First, digital currency is the authority of BI as the central bank, as mandated by the 1945 Constitution, which is later spelled out in the Currency Law and the Bank Indonesia Law.

"In that context, BI will issue CBDC as a legal payment instrument in the Republic of Indonesia," he said Tuesday (25/5).

In this case, according to Perry, his party will prepare end-to-end, both in terms of design and circulation, as is done with banknotes, credit cards, and debit cards.

"The second consideration, CBDC will support the implementation of monetary, macroprudential and payment system policies, including the readiness of infrastructure in the money market, foreign exchange market, and in the financial sector," he explained.