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Bank Indonesiathe central bank of the country, is preparing launch a stablecoin backed by government bonds.
This plan is based on the bank ongoing efforts to develop a central bank digital currency (CBDC)known as the digital rupee.
The announcement came from Governor Perry Warjiyo at a recent digital finance and fintech event held in Jakarta, according to a report from CNBC Indonesia.
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He explained that the bank aims to create digital securities backed by bonds issued by the government and backed by the digital rupee. These securities are called Indonesia’s version of a national stablecoin.
In practice, the idea is to use the digital rupee as a basis for issuing tokenized financial products backed by government bonds.
Although stablecoins are not officially recognized as legal tender in Indonesia, authorities are monitoring their growing use. The Financial Services Authority (OJK) has started monitoring stablecoin activitiesespecially in international payments and transfers.
Dino Milano Siregar, who heads the division of the OJK focused on crypto and digital assets, stated that the agency enforces anti-money laundering rules and requires regular updates from companies involved in the trading of 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.
