- CBDC is the digital format of a country’s fiat currency.
- Recently, Indonesia laid out plans to implement the concept.
- Governor of the nation confirmed this.
CBDC On Track
Many nations around the globe are discussing implementing CBDCs to improve the financial aspects of the country. Indonesia joins this list following the announcement by Governor Perry Warjiyo. As reported by Bloomberg, Indonesia CBDC is on the track now. They are discussing strategies to develop virtual fiat and may reveal its conceptual design by this year’s end.
It is similar to the country’s fiat and will be utilized for transacting purposes in Indonesia. The nation wants its CBDC to assist cross-border payments across the globe. Currently, they are working on cybersecurity associated with the Digital Rupiah. Indonesia has become among the various nations across the world to think about implementing Central Bank Digital Currency.
As per a report issued by a data aggregator, there are 105 nations exploring this concept. The number has stretched significantly since May 2021 from 35 nations at that time. 10 countries have already launched CBDC programs. Nigeria, the biggest African economy implemented the program back in 2021.
The United Kingdom and United States are among a couple of G7 nations that are behind in CBDC development. With respect to G20 nations, 19 of them have either initiated a pilot or are laying out plans to implement this concept.
What Are CBDCs?
CBDCs are basically digital formats of a country’s fiat. Folks usually confuse them with crypto assets, but they are not cryptocurrencies. A CBDC is a legal tender of the country and it is not backed by any tangible asset such as platinum, silver or gold. Covid-19 pandemic truly gave rise to this concept, as the time showed how physical money can give rise to a contagious disease at such a crucial time.
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