The Central Bank of Indonesia (Bank Indonesia) announced plans to issue a digital security backed by government bonds, built on the country’s central bank digital currency (CBDC) infrastructure.
JUST IN: Indonesia’s central bank will launch a bond-backed stablecoin tied to its digital rupiah CBDC. pic.twitter.com/dgEFp75qRy
— Cointelegraph (@Cointelegraph) October 30, 2025
The initiative, unveiled by Governor Perry Warjiyo at the Indonesia Digital Financial Economy Festival & Fintech Summit 2025 in Jakarta, marks a major milestone in integrating blockchain technology into the nation’s financial system.
“We will issue the Indonesian Central Bank Securities in digital form, a bond-backed digital shield, effectively Indonesia’s version of a national stablecoin,” said Warjiyo.
A Hybrid Between CBDC and Stablecoin
This new digital instrument described as a hybrid between a CBDC and a stablecoin will operate as a direct liability of the central bank, distinguishing it from privately issued stablecoins such as USDT or USDC.
The digital securities, derived from the Digital Rupiah CBDC, will be fully collateralized by Indonesian government bonds (SBN). The move aims to enhance monetary control, settlement efficiency, and financial security, addressing the credit and issuer risks associated with private stablecoins.
Strengthening Financial Sovereignty Through Blockchain
By adopting blockchain technology within its financial system, Indonesia seeks to modernize its digital payments landscape while maintaining sovereign control.
The Financial Services Authority (OJK) had already begun monitoring stablecoin usage due to their increasing role in payments and remittances despite stablecoins not being recognized as legal tender in Indonesia.
OJK’s head of digital assets, Dino Milano Siregar, noted that the growing use of asset-backed stablecoins as hedging tools underscores the regulatory urgency for oversight. Currently, OJK requires stablecoin exchanges to comply with anti–money laundering (AML) rules and submit periodic reports.
Phased Implementation and Institutional Use
The Digital Rupiah project, under development for several years, will evolve into this bond-backed stablecoin system. The tokenized government bonds, known locally as Surat Berharga Negara (SBN), will serve as the backing assets for the so-called “digital shield,” blending the reliability of sovereign bonds with the flexibility of digital currency.
Bank Indonesia emphasized that this national stablecoin will complement, not replace, physical rupiah. The rollout will begin with institutional and cross-border payment use cases, before expanding into retail applications in later phases.
Industry analysts view the move as a strategic response to guide crypto activity into a regulated ecosystem while reinforcing Indonesia’s financial sovereignty.
With international remittance systems already leveraging technologies like Ripple (XRP), observers are closely watching how Indonesia’s state-backed stablecoin will coexist or compete in the global payment landscape.
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