Indonesia explores integrating cryptocurrencies into financial system

July 14 (MT Newswires) -- Doni Primanto Joewono, the governor of the central bank of Indonesia, has ended rumors about potential crypto adoption by confirming that his country is searching for the best ways to integrate digital assets into its financial system.

The governor made it known that the central bank is joining other institutions across the globe in researching ways of rolling out a national digital currency to meet the needs and interests of Indonesians.

Joewono said the introduction of digital assets into the mainstream has triggered the need for countries to look into the feasibility of a central bank digital currency. Despite its potential, he indicated that such unregulated digital currencies pose risks to the current centralized financial system.

Commenting directly on the subject, the governor said Indonesia is among several countries whose central banks are studying the possible effects of a national digital currency. Indeed, cryptocurrencies can bring new risks that could affect monetary and economic stability.

Indonesia is assessing the possibilities of a CBDC and a white paper about the project will be released soon.

Speaking on the sidelines of the G20 summit, the governor further reiterated that digital coins and tokens have several hidden qualities that can be valuable to the current financial system, like enhancing inclusion, as well as improving the efficiency of transactions.

Despite the governor's optimism, Indonesia is known across the crypto world as an unfriendly country and this is evident in its strict laws. The country's Financial Services Authority has previously stated that financial firms cannot offer or facilitate the sale of digital assets. The agency's reasoning behind this was the protection of citizens from risky assets.

The country also imposed a value-added tax on transactions involving digital assets in addition to an income tax on capital gains from investments related to the industry.

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