A national cryptocurrency exchange will debut in Indonesia in 2023.

According to a Bloomberg article, Indonesia has declared intentions to launch a national cryptocurrency exchange in 2023. The government also intends to subject cryptocurrency to regulation examination by the Financial Services Authority (FSA).

The Commodity Futures Trading Regulatory Agency, also referred to as Bappebti in Indonesia, is presently in charge of overseeing digital assets. Didid Noordiatmoko, the interim chairman of Bappebti, stated on Wednesday that the Indonesian exchange will be online by 2024, when the FSA will assume control of cryptocurrency regulation.

The Indonesian government has made it clear that it views cryptocurrencies as a possible threat to its banking markets, even though this action appears to be largely supportive of the growth of cryptocurrency in the fourth most populous nation in the world. The central bank of Indonesia, Bank Indonesia (BI), published a white paper on December 1 outlining their strategy for a potential central bank digital currency (CBDC) in reaction to the increasing popularity of cryptocurrencies in the nation.

“The future of the central bank is at a crossroads,” noted by BI Governor Perry Warjiyo. “Digital innovations may not only disrupt the banking system, but on a more pervasive scale, the possible disruptions on official currencies and central banking triggered by the advent of stablecoins and unbacked crypto assets.”

The document also cautioned that stablecoins and unsupportable crypto assets could raise the possibility of financial fraud and the funding of terrorism as well as “macrofinancial risk in the form of shadow currency and shadow banking that undermine the effectiveness of central bank policy.” It also mentioned that certain analysts think these investments might create “a Digital Currency Area” that completely ignores central banks and puts a strain on the international monetary system on a global scale.

“It goes without saying that the central banking community won't do anything. Neither will BI, said Warjiyo, who also noted that CBDCs are seen as ”a potential future-proof solution by central banks.

Today, 383 crypto assets and 10 regional tokens can be exchanged lawfully in Indonesia, and another 151 commodities and 10 tokens are undergoing assessment, according to Bappebti.

Beginning in 2017, Indonesia put a complete prohibition on cryptocurrency payments, while the country has mainly allowed the trade of digital assets. Noordiatmoko announced in the first few days of January that in 2022, the value of digital currencies in the nation decreased by 50%, from 859.4 trillion Indonesian rupiahs ($55 million) to 296.66 trillion ($19 million).

The prototype model of a digital rupiah, the counterpart of the nation's fiat currency, was presented for public discourse in December, according to Bank of Indonesia Governor Perry Warjiyo.

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