BANK INDONESIA STUDIES USE OF BLOCKCHAIN SYSTEM

JAKARTA-- Bank Indonesia (BI) is studying the use of blockchain, a system in which a record of transactions made in bitcoin or another cryptocurrency is maintained across several computers.

"In addition, BI is studying a central bank digital currency (CBDC) for domestic payment system," Payment Systems Policy Bureau head Onny Widjanarko said here on Monday.

BI is still calculating the impact and risk mitigation efforts if the policy is implemented.

BI has no time map to test the implementation of the central bank digital currency.

Central banks of other countries are currently researching the use of blockchain and CBDC.

The study will also cover certain sectors that will be facilitated by the use of blockchain and the digital currency.

South Africas Reserve Bank Governor Lesetja Kganyago is studying how a new technology, or fintech, is transforming the financial sector.

"Banks will never be the same they need to embrace fintech or they will disappear," Kganyago earlier stated, as quoted on the official website of the International Monetary Fund (IMF).

Kganyago, South Africas bank governor since 2014, was recently appointed as the chair of the influential International Monetary and Financial Committee (IMFC). As the first committee chair from sub-Saharan Africa, many expect him to focus on the challenges facing emerging market and low-income countries.

Kganyago revealed that with all the opportunities that financial technology offers, there is an added responsibility to ensure the integrity of the financial system.

According to Kganyago, another area where the impact of technology is felt is in fighting corruption.

About US$1.5 to $2 trillion each year is lost to bribery alone, and central banks are well positioned to spot illicit flows.

Source: NAM NEWS NETWORK

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