Digital money

 In a number of countries, digital currency has become an inevitable necessity. China, Canada, Sweden and Uruguay, for example, are currently implementing changes and new thinking to supply digital currency to the public. Sweden's central bank, Riks bank, is even planning the first version of a digital currency called e-krona in 2019. Riksbank data shows that Swedes are one of the people who use cash the least in the world. It was recorded that only 13% of citizens used cash for most recent purchases in stores.

The development of digital money is not just non-cash (cashless). Technological advances have also given rise to crypto currency. The safe use of digital currency also emerged at The Bali Fintech Agenda which was launched by the International Monetary Fund (IMF) and the World Bank in Bali, last October.

Last week during the Singapore Fintech Festival, Managing Director of the International Monetary Fund (IMF) Christine Lagarde again reminded central banks in the world to respond well to technological developments. Lagarde asked central banks such as Bank Indonesia (BI) to consider issuing digital currency at a time when money is facing a historic turning point. According to him, currently the demand for cash is decreasing in various parts of the world. In this condition, the central bank has a role in supplying money to the digital economy. "I believe that we should consider the possibility of issuing a digital currency," Lagarde said as reported by CNBC.

Savings currently held in commercial banking have become digital. "But digital currency could probably be supported by the government in the same way that cash is currently," he said. Lagarde's encouragement is not excessive. For him, central bank-backed digital currencies can help promote financial inclusion, security and privacy in payments as a cheap and efficient alternative to paper currency. However, he warned about various risks to financial stability and innovation. "My message is that although the case for digital currencies is not universal, we must investigate further, seriously, carefully and creatively," he said.