The crypto market enjoys a diverse range of adoption not only from the retail sector but also from institutional investors, financial enterprises, and states as well. But this adoption has been dwindling for the past couple of months as not everyone is at home with the concept of decentralization. In fact, there are a few states, such as China, that see decentralization as an enemy to the fiat currency and centralized financial bodies. Those countries who want to control every aspect of their economy and financial systems won’t chip in to support the decentralization of cryptocurrencies in any shape or form.
According to a recent report from the Bank of Indonesia executives, CBDCs should be implemented within the country as a measure against severe volatility that cryptocurrencies and especially Bitcoin, presents. This statement comes out as a surprise to many as the country is willing to adopt crypto in terms of making it a practical mode of payment, but only if CBDCs are also involved in the game. According to the Bank of Indonesia, CBDCs would prove to be a highly polished element for the sake of combating crypto and the volatility which it represents.
Bank of Indonesia: CBDCs are more Important than Crypto
CBDC is referred to as the central bank digital currencies, which are the same as a cryptocurrency but works for or are supported by centralized bodies. CBDC is everything that decentralization stands against; what is the purpose of introducing a digital currency if, at the end of the day, it has to be paraded along the canal by centralized bodies such as the state, central banks, and other financial bodies. That is why cryptocurrencies find their use among an audience where people don’t want anything to do with this centralized nagging of things and want to be more independent financially.
But obviously, many countries, including Indonesia, as per the statement which it recently rolled out, see these crypto tokens as a threat to the economy and fiat financial system. The odd thing above all is that these states that run a sophisticated financial system that is so complex and yet highly regulated can’t see crypto for what it is; an opportunity to step into modern finance.