Indonesia is advised to implement digital rupiah with blockchain technology to improve the quality of financial governance and safeguard the country's sovereignty.
The emergence of cryptocurrency and blockchain technology over the past decade has brought new possibilities in the issuance and use of money as well as new forms of digital assets and exciting markets.
Along with the rapid development of the geopolitical, economic, and social environment, there is also a growing need for new standards for digital payments and a safe, trustworthy, and easy-to-use medium of exchange.
"One of them is a new standard that has recently begun to be intensively applied in various countries, regarding the Central Bank Digital Currency (CBDC)," said Gilang Bhagaskara, Director of Blocksphere Indonesia.
To accelerate the adoption of CBDC in Indonesia, recently Blocksphere Indonesia, in partnership with Consensys, published a CBDC adoption review report entitled “Consensys Official Report: Central Bank and the Future of Digital Money”. The report can be downloaded here.
The report states that Indonesia is advised to implement digital rupiah in the context of the Central Bank Digital Currency (CBDC).
"Apart from these two things, Indonesia has the potential to accelerate digital financial innovation by implementing a central bank digital currency (CBDC)," said Gilang Bhagasakara Director of Blocksphere Indonesia.
Gilang continued, as an archipelagic country with decentralized geography, Indonesia has challenges regarding data fragmentation in many sectors. It also includes the financial sector, payments, and economic regulation.
With CBDC blockchain technology, Indonesia can accelerate the state financial business process, both in the retail, interbank and inter-country sectors.
Pandu Sastrowardoyo, VP of Consulting Blocksphere Indonesia & Supervisory Board of the Indonesian Blockchain Association added that the CBDC in principle acts as a protector of currency sovereignty.
CBDCs can also assist in financial governance in Indonesia. The transparency on which this technology design is based, as well as its anti-tampering features, can enhance audibility and financial tracking throughout Indonesia.
Blocksphere is an information technology company in Indonesia that specializes in blockchain development.
The company, which was founded in 2017, has experience in developing various blockchain-based solutions since the technology became popular, in dozens of large-scale companies, both nationally and internationally.
In Indonesia, Blocksphere is a strategic partner of Consensys, a leading US company in the blockchain field. Consensys is also known as the creator of Hyperledger Besu technology, including as the initiator of the public blockchain, Ethereum.
In August 2020, Consensys expanded the scope of its solution by purchasing JPMorgan's blockchain technology, Quorum. With the acquisition of this technology, Hyperledger Besu products later merged into the Consensys Quorum product family with GoQuorum.
In addition, Consensys is trusted by many countries to develop CBDC solutions, including the newest one in Hong Kong.
“Blocksphere is ready to be the main partner for all companies in Indonesia in accessing Consensys technology and services. Particularly for the application of CBDC in Indonesia, Blocksphere is ready to partner with the central bank," concluded Gilang.