Bank Indonesia continues to develop digital rupiah as a legal payment instrument and supports the mandate and task implementation of central banks in the digital era, while accelerating and integrating the national digital economic and financial ecosystem.
The primary mechanism for regulating excessive leverage and other aspects of risk-taking in a market economy is the discipline provided by creditors, counterparties, and investors. In the LTCM episode, unfortunately, market discipline broke down. LTCM received generous terms from the banks and broker-dealers that provided credit and served as counterparties, even though LTCM took exceptional risks.