Bank Indonesia, the country’s central bank, is preparing to launch a stablecoin backed by government bonds.
This plan builds on the bank’s ongoing efforts to develop a central bank digital currency (CBDC), known as the digital rupiah.
The announcement came from Governor Perry Warjiyo at a recent digital finance and fintech event held in Jakarta, according to a report by CNBC Indonesia.
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He explained that the bank aims to create digital securities backed by government-issued bonds and supported by the digital rupiah. These securities are being referred to as Indonesia’s version of a national stablecoin.
In practice, the idea is to use the digital rupiah as a base to issue tokenized financial products backed by state bonds.
Although stablecoins are not officially recognized as legal currency in Indonesia, authorities are monitoring their growing use. The Financial Services Authority (OJK) has begun monitoring stablecoin activities, particularly in payments and international transfers.
Dino Milano Siregar, who leads the OJK’s division focused on crypto and digital assets, stated that the agency is enforcing anti-money laundering rules and requiring regular updates from businesses involved in trading stablecoins.
He added that some stablecoins are already used as tools to manage risk. These tend to be more stable in value compared to other types of digital currencies.
The Canadian government is working on new rules for stablecoins in its federal budget announcement on November 4. What is the purpose of the rules? Read the full story.
