Indonesia’s Blockchain Leadership Supported by Central Bank

May 1, 2019

Blockchain technology and cryptocurrencies have had a storied history in Indonesia. When first introduced, they were viewed as disruptors to the existing financial order, owed in no small part to the fact that transactions involving cryptocurrencies removed the need for intermediary roles that were traditionally filled by banks and other financial institutions.

But according to regional tech-driven media outlet The ASEAN Post, Indonesia has since been at the forefront of blockchain in several ways, reporting that it was the first country in the region to actively adopt the technology. In January of last year, Bank Indonesia (BI) announced plans to launch its own blockchain-based digital rupiah currency. Its issuance by the central bank differentiates it from cryptocurrencies, which are decentralized.

The more accommodating stance taken by BI towards blockchain has encouraged other domestic institutions to explore possibilities with the technology. Five major banks, comprising Bank Negara Indonesia, Bank Rakyat Indonesia, Bank Mandiri, Bank Danamon and Bank Permata, are studying avenues for blockchain adoption.

Indonesia is currently ranked 14th in the world for receipts of migrant remittances, according to the World Bank, with the amount sent home from those working abroad totaling an estimated US$10.5 billion. Through the adoption of blockchain, the country’s share of remittance revenue could grow substantially as the technology removes the need for intermediaries, thereby streamlining transactions and reducing costs.

Given the country’s many small businesses, the implementation of blockchain has the potential to enhance the sector by providing a more affordable and less bureaucratic alternative to the deployment of costly digital payment mechanisms.

With the backing of the central bank, more blockchain-specific firms and initiatives are expected to be established going forward, as Indonesia increasingly embraces the technology.


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Blockchain Enables Verification of COVID-19 Immunity
    Given the virus is not going to disappear in a hurry and we are some time away from vaccinating the ...

    November 21, 2020

    Illicit Cryptocurrency Activity: A Concern
    Market regulators such as SEC has accepted cryptocurrencies as a financial instrument and are consta...

    November 20, 2020

    IBM Using Blockchain to Help Businesses Reopen during COVID-19
    IBM’s healthcare unit, IBM Watson recently announced that they will soon be launching an app to supp...

    November 20, 2020

    Canadian Pacific Railway Collaborates with TradeLens
    Canadian Pacific Railway recently collaborated with TradeLens in a bid to improve its efficacy as an...

    November 19, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us