Bank Indonesia to Launch Tokenized Bonds on Digital Rupiah CBDC
Bank Indonesia plans to introduce a national stablecoin backed by government bonds, aiming to reinforce the digital rupiah’s role and strengthen Indonesia’s financial infrastructure and currency stability.
Summary
Bank Indonesia Governor Perry Warjiyo revealed plans for a national stablecoin backed by government bonds, according to CNBC Indonesia. The stablecoin will operate on the digital rupiah, integrating tokenized sovereign debt into the country’s financial system. This initiative seeks to enhance currency stability, modernize financial infrastructure, and expand the digital rupiah’s utility beyond payments.
Terms & Concepts
- Central Bank Digital Currency (CBDC): A digital form of a nation’s fiat currency issued and regulated by its central bank.
- Tokenized Bonds: Digital representations of traditional bonds issued on a blockchain, enabling enhanced security and transferability.
- Stablecoin: A cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, such as fiat currency or commodities.