Digital rupiah trial in 2024 as part of national payment in Indonesia

Not fiat the car? Reliable and cheap lol
I don't think I have ever heard the words Fiat and reliable in the same sentence but I am from the US. We don't know much about Fiats. The imports we got there were pretty terrible.
 
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I have no idea about the finer points of digital money as a central bank thing. I do know I don't use cash very often. I suppose I'd see little difference if it all changed.
I use BCA QRIS for most things and a BCA Flazz card for the rest. I top that up from my banking app.
I keep a little cash with me but a million lasts a few weeks. I get the cash from an ATM but use the app so I don't need the card.
 
There is again recent news about the digital Rupiah (CBDC).
"We have done (proof of concept). Now we are in (the stage of) choosing the right technology," he said at the GBI Talk on Blueprint of the Indonesian Payment System 2030 event, as reported by Kompas.com, Friday (2/8/2024)."
 
Interesting to see what technology will be implemented. Bank account at BI or a wallet-app at your phone?
 
Interesting to see what technology will be implemented. Bank account at BI or a wallet-app at your phone?
Guaranteed to include name, ktp, and tracking to see what every individual is spending with large amounts flagged to be checked by someone.
 
When you mentioned that 97% of the current money is already digital, I'm uncertain whether you grasp the distinction between digital transactions involving money or currency and the forthcoming concept of digital rupiah set to be introduced in 2024.

A disparity exists between the two. In the case of digital payments or transactions using various eWallets for instance that have been in use for a considerable period, there is a tangible connection to physical printed banknotes and their corresponding background. In contrast, digital rupiah completely eliminates the necessity for physical printed IDR banknotes. It proves more efficient for the central bank since there's no need for paper and coin production. For individuals, it eliminates the necessity to carry cash or maintain a physical money box for savings, and it also facilitates easier transaction tracking.

Digital rupiah is categorized the so called the Central Bank Digital Currency (CBDC). Because it is issued by the central government, and its value relies on the trust and confidence people have in the government, it maintains its classification as a fiat currency.

It's important to highlight that, as of now, the UK government has not introduced any digital version of the GBP.
The governments make it sound so convenient to use only digital currency. No paper notes, or carry money,or have savings, and makes easier transactions. What they don't mention is all your money, is in the hands of the bank(government) and they have complete control over your funds. And will tax you to the penny. What about the poor rural population's that don't live near a bank, or have computers? Will they be able to buy anything, like food, fuel, equipment, etc? Many people like this still don't have much education, and will not understand what to do. This looks like a disguise for Big Brother Is Watching!
 
The governments make it sound so convenient to use only digital currency. No paper notes, or carry money,or have savings, and makes easier transactions. What they don't mention is all your money, is in the hands of the bank(government) and they have complete control over your funds. And will tax you to the penny. What about the poor rural population's that don't live near a bank, or have computers? Will they be able to buy anything, like food, fuel, equipment, etc? Many people like this still don't have much education, and will not understand what to do. This looks like a disguise for Big Brother Is Watching!
Not even mentioning they can seize your money or block your account for any reason....
Examples :

Cyprus crisis :

Lebanon :

Canada truckers :

Not even speaking about the West freezing / seizing property or money from anyone they dislike....
Russians, Iranians, Venezuela....
 
So, you don't trust the Indonesian government?
I believe the problem isn't with the Indonesian Government itself. Any government tries to do good or at least say things that sound pleasing. The real issue lies with the people working within the government. Evidence shows that many government employees treat public funds, or people's money, as if it were their own or an inheritance from their ancestors.

However, there is LPS (Guaranteed Deposit by the Indonesian government). It is extremely unlikely they will breach this public trust unless Indonesia turns into a failed state. For that reason, it is important to make sure people do not exceed the amount of money and the interest rate guaranteed by the Indonesian government. One way to ensure this is to split the money into several banking groups.

One of the primary benefits of Central Government Digital Currency for a country like Indonesia is that transactions are traceable, which can be crucial in uncovering criminal activities such as corruption.
 
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I believe the problem isn't with the Indonesian Government itself. Any government tries to do good or at least say things that sound pleasing. The real issue lies with the people working within the government. Evidence shows that many government employees treat public funds, or people's money, as if it were their own or an inheritance from their ancestors.

However, there is LPS (Guaranteed Deposit by the Indonesian government). It is extremely unlikely they will breach this public trust unless Indonesia turns into a failed state. For that reason, it is important to make sure people do not exceed the amount of money and the interest rate guaranteed by the Indonesian government. One way to ensure this is to split the money into several banking groups.

One of the primary benefits of Central Government Digital Currency for a country like Indonesia is that transactions are traceable, which can be crucial in uncovering criminal activities such as corruption.
Invariably complex systems involve complex rules often not understood by the lower level administrators and once a precedent is set, no matter how illogic or confusing, it is very very difficult to bring about change. The other problem is rarely are there enough staff to handle a volume of complaints from confused clients.
 
One of the primary benefits of Central Government Digital Currency for a country like Indonesia is that transactions are traceable, which can be crucial in uncovering criminal activities such as corruption.
The question is: "What problem is the government solving?"
Or: "Are they creating one?".

  • If everyone wants e-Rupiahs, a bank run will be created. Commercial banks will not be happy.
  • Are they able to implement a safe infrastructure that's supports millions of bank accounts at BI?
 
I believe the problem isn't with the Indonesian Government itself. Any government tries to do good or at least say things that sound pleasing. The real issue lies with the people working within the government. Evidence shows that many government employees treat public funds, or people's money, as if it were their own or an inheritance from their ancestors.

However, there is LPS (Guaranteed Deposit by the Indonesian government). It is extremely unlikely they will breach this public trust unless Indonesia turns into a failed state. For that reason, it is important to make sure people do not exceed the amount of money and the interest rate guaranteed by the Indonesian government. One way to ensure this is to split the money into several banking groups.

One of the primary benefits of Central Government Digital Currency for a country like Indonesia is that transactions are traceable, which can be crucial in uncovering criminal activities such as corruption.
You call that a benefit? For who, the tax man mostly! What about the poor farmer, that never went to school, and basically lives hand to mouth daily. Some don't have handphones or bank accounts. What about all the stories of the rich people and corporations that hide their money in foreign accounts. They have fancy lawyers that make it look like are running on empty, and pay less tax, than their employees! Some are in the government also! Is that corruption? You call this a benefit?
My friend told me now, the schools require the children to have smart phones, for their homework. This going too far! He said the parents pay for uniforms, books, the teachers, and have to clean the school grounds what is the government paying for?
 
You call that a benefit? For who, the tax man mostly! What about the poor farmer, that never went to school, and basically lives hand to mouth daily. Some don't have handphones or bank accounts. What about all the stories of the rich people and corporations that hide their money in foreign accounts. They have fancy lawyers that make it look like are running on empty, and pay less tax, than their employees! Some are in the government also! Is that corruption? You call this a benefit?
My friend told me now, the schools require the children to have smart phones, for their homework. This going too far! He said the parents pay for uniforms, books, the teachers, and have to clean the school grounds what is the government paying for?
I am neither against nor in favour of the implementation of CBDC. To me, a mix of both might be better. They might gradually reduce the supply of banknotes but there is no indication that banknotes will be discontinued when the digital rupiah is introduced as far as I am aware.

I believe the benefits extend to both the government and society in general. If transactions are traceable, criminals, money launderers, and tax dodgers will need to work harder to avoid detection. Additionally, not having to print banknotes mean more environmentally friendly and those costs associated with printing banknote could be redirected to other purposes. But as always the case, no policy will satisfy 100% of society.

Like elsewhere, I believe there will be a phased implementation, restricting the use of banknotes for high-value transactions initially, and then gradually phasing out banknotes. This is similar to how low-denomination banknotes gradually disappear.

Society is constantly evolving. Those who fail to keep up will be left behind. Over a very long period, those unable to adapt will face extinction. This is the core of Darwin's theory of evolution and natural selection.

quote-it-is-not-the-strongest-of-the-species-that-survives-nor-the-most-intelligent-that-survi...jpg
 
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The digital currency idea will create huge confusion irrespective of whether or not ultimately it is a better system. Trying to get specific answers to questions from any large organization be it government or private is enormously frustrating. The bulk of the enquiries will come from individuals seeking information about what are seen to be petty issues. Customer support services are usually well managed when it comes to dealing with the big end of town but for us lesser mortals governments see it as requiring too many extra personnel to service this and just let it slide. Private organizations are keen to get your money but do not want to erode their profits by having adequate customer support.
 
The digital currency idea will create huge confusion irrespective of whether or not ultimately it is a better system. Trying to get specific answers to questions from any large organization be it government or private is enormously frustrating. The bulk of the enquiries will come from individuals seeking information about what are seen to be petty issues. Customer support services are usually well managed when it comes to dealing with the big end of town but for us lesser mortals governments see it as requiring too many extra personnel to service this and just let it slide. Private organizations are keen to get your money but do not want to erode their profits by having adequate customer support.
Indeed, with a digital Rupiah everything has to be done via the central bank Indonesia, the only bank that has no experience with dealing with millions of customers. A single point of failure is created, while everything now just operates, if there is a malfunction at one bank. "
 

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