Application of Digital Currency Still Needs Study

INDUSTRY.co.id - Jakarta - Chairman of the Board of Commissioners OJK Wimboh Santoso explains changes in people's lifestyles and the development of communication and information technology, has made the proliferation of digital-based business that is e-commerce.

In addition, the existence of financial technology or financial technology that would require a tool of payment more quickly, safely and efficiently.

Wimboh made the remarks at a seminar on Digital Fiat Standardization of Currency (DFC) and Its Implementation organized by International Telecommunication Union (ITU) with Cornell Research Academy at the weekend at Cornell Tech, New York.

The seminar discussed the latest technological trends and innovations in digital currency publishing and its impact on the economy and stability of the financial system.

According to Wimboh, in his official statement received by Antara in Jakarta, Sunday (22/7/2018) the use of e-money and cryptocurrency in digital-based business will hamper some limitations so many countries begin to study and try to implement Central Bank Digital currency (CBDC) and Crypto Fiat Currency using Block Chain technology (Distributed Ledger Technology) and supported by sovereign currency (issued by Central Bank).

Wimboh conveys that the application of CBDC using Distributed Ledger technology in Indonesia needs to be continuously reviewed for its implementation due to the benefits of strengthening the payment system.

"For Indonesia with large population and demographic condition spread over 17 thousand islands, the development of reliable financial technology and digital payments must be supported by us because it is one of the solutions for improving the welfare of the community through the availability of financial access," said Wimboh.

Wimboh also said that the implementation of CBDC should maintain the role of the central bank as the monetary authority and payment system. Aspects of financial system stability and consumer protection should also not be ruled out in the application of CBDC.

Implementing the CBDC will save a lot of money in the payment system and accelerate the increase in the inclusion of people's finances. In its application it is necessary to transition gradually and parallel and also the conversion mechanism must be clear and transparent. Similarly, the legality aspect also needs to be adjusted.

The adjustment of legality of digital payment systems in developing countries is relatively easier than in the United States, which requires a longer process, based on research from Angela Walch, Professor at St. Mary's University School of Law.

An integrated payment system ecosystem is urgently needed so that the presence of the National Payment Gateway by Bank Indonesia is an appreciated first step that presents a single network for domestic transactions.

OJK together with the Government, Bank Indonesia academia and also international institutions are committed as global collective efforts to implement CBDC can grow in the desired direction and bring benefits to the wider community.