Indonesian, Congrats! We Will Have Our Own Digital Currency

"We Won't Be A Victim of World's Digital Giant" Says Jokowi

In one of the speech done by my president, Joko Widodo or Jokowi, stated that he don't want Indonesia become the victim of unfair practices done by the world's Digital Giant.

He want to strengthen the national's digital start up with a program called Digital Connectivity 2021 so that we can have digital transformation which good for everyone.

But competing with Digital Giant won't be easy for Indonesian start up, as we can't even have a good Internet connection through out the Nation. Some places don't even have a mobile signal.

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Following China, We Will Have Our Digital Currency

in another interview a statement made by The Indonesian Bank Governor as the head of the Indonesian Central Bank stated that they are preparing and still in development to make our Own Digital Currency to follow the lead made by the Chinese Government.

This can be a good news and also bad news at the same time. Good because the government have an eye and also getting a hand on a developing technology. But having it centralized also not a good thing for a technology which is intended to minimized the use of central authority.



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There Will be 3 Models of Digital Currency

The head of the Central Bank also stated that there will be 3 models of the Digital Currency. They are still in development which model that they are going to use.

1. Indirect Model
   Just like how things works in this current banking and fiat system.
2. Direct Model
   In this model, every person or business can directly has an account in the central bank. all the regulation and also the KYC will be handled by the Central Bank but this with fear that the commercial bank will lose all the liquidity in case there is not limit for a person to have a holding in the Central Bank.
3. Hybrid Model
   in this model, Everyone will have an account and can keep their Digital Currency in the Central Bank, but all the payment and the KYC will be done by the commercial bank.
   This is the model being implemented by the Chinese Government.

But in all of those, all are centralized. In case the government want to track down and seize your fund, it will be done easily.

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How Safe It Can Be?

This also leave another question, will it safe? As I mention earlier, there not much to hope at the moment in the digital things in Indonesia. Because the Digital Transformation is still at the earliest stage.

It will need a huge and long education for the citizen. It is a new technology, and those who have no knowledge in such thing can be an easy prey for scammer and fraudster. Did your Government has develop its own Digital Currency?