{"id":18860,"date":"2026-05-03T21:48:03","date_gmt":"2026-05-03T21:48:03","guid":{"rendered":"https:\/\/finteqc.ca\/?post_type=finteqc_paper&#038;p=18860"},"modified":"2026-05-03T21:49:25","modified_gmt":"2026-05-03T21:49:25","slug":"15946","status":"publish","type":"finteqc_paper","link":"https:\/\/finteqc.ca\/index.php\/papers\/15946\/","title":{"rendered":"From Digital Payments to Digital Currency: Simulating CBDC\u2019s Monetary Innovation in Indonesia"},"content":{"rendered":"<p>The rapid expansion of digital payment systems has renewed policy interest in central bank digital currencies (CBDCs) as a form of sovereign digital money. This paper examines the potential adoption dynamics and transaction implications of a retail CBDC in Indonesia through a simulation-based framework. The analysis develops a model that combines digital-readiness indicators, logistic adoption functions for consumers and merchants, transaction matching within a two-sided payment market, and Monte Carlo simulations to project CBDC diffusion under alternative policy scenarios. The results indicate that CBDC adoption is highly sensitive to policy design parameters. Remuneration-based configurations generate the strongest incentives for user adoption and produce the largest shares of CBDC transactions, while mechanisms such as government-to-person transfers and merchant discount rate reforms can further accelerate diffusion by strengthening network effects within the payment ecosystem. The findings also highlight the importance of balancing adoption incentives with financial stability considerations, particularly in relation to potential deposit substitution within the banking system. In the Indonesian context, the Digital Rupiah is likely to function most effectively when integrated with existing digital payment infrastructures and public-sector payment channels. Overall, the study provides a forward-looking framework for evaluating CBDC policy design in emerging digital payment economies.<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-18860","finteqc_paper","type-finteqc_paper","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/finteqc.ca\/index.php\/wp-json\/wp\/v2\/finteqc_paper\/18860","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finteqc.ca\/index.php\/wp-json\/wp\/v2\/finteqc_paper"}],"about":[{"href":"https:\/\/finteqc.ca\/index.php\/wp-json\/wp\/v2\/types\/finteqc_paper"}],"wp:attachment":[{"href":"https:\/\/finteqc.ca\/index.php\/wp-json\/wp\/v2\/media?parent=18860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}