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Regulating Fintech in the CBDC Era: Addressing Competitive Fragility and Preserving State-Owned Banking Stability

Journal of Indonesian Legal Studies · Vol. 10 No. 1 (2025) · pp. 257–294

DOI
10.15294/jils.v10i1.19342
ISSN
2548-1592, 2548-1584
Published
2025-08-31
Publisher
Universitas Negeri Semarang
Language
eng
License
creativecommons.org/licenses/by-sa/4.0

Abstract

This study investigates the possible consequences of Indonesia's Digital Rupiah on the future landscape of banks and FinTech companies. Our findings indicate that the advent of Central Bank Digital Currencies (CBDCs) may create an unlevel playing field between banks and FinTech firms. With the potential for intermediaries, including banks and non-bank institutions, to gain wholesale access to the Digital Rupiah, heightened competition could ensue, posing a risk to the stability of commercial banks, even extending to state-owned entities. Policymakers in Indonesia must create fair policies that promote competition among all stakeholders while strategically positioning state-owned banks to ensure economic stability and sovereignty. Drawing inspiration from Niklas Luhmann's framework of law as a social system, which emphasizes the balance between openness and closedness, and incorporating Julia Black's principle-based approach to regulation, we propose a regulatory framework and interaction pattern between bank and fintech. This framework aims to strike a balance between the needs of banks and FinTech firms by integrating elements of entity-based and activity-based regulation.

Keywords

Collaboration network of the authors

17 authors · 34 co-authorship links

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Co-authorOrganisationJoint articles
Kukuh TejomurtiAffiliation unknown3
Anugrah Muhtarom PratamaAffiliation unknown3
Pujiyono PujiyonoAffiliation unknown2
Pranoto PranotoAffiliation unknown2
Itok Dwi KurniawanAffiliation unknown1
Dara Pustika SukmaAffiliation unknown1
Bambang SantosoAffiliation unknown1
Mohamad Hanapi Bin MohamadAffiliation unknown1
Mohamad Hanapi MohamadAffiliation unknown1
Rani HendrianaAffiliation unknown1
Lintang Ario PambudiAffiliation unknown1
Weda KupitaAffiliation unknown1
Setya WahyudiAffiliation unknown1
Nurani Ajeng Tri UtamiAffiliation unknown1
Tedi SudrajatAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.unnes.ac.id/journals/jils/oai, first harvested 6 Nov 2026, last seen 6 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en">Regulating Fintech in the CBDC Era: Addressing Competitive Fragility and Preserving State-Owned Banking Stability</dc:title>
	<dc:creator xml:lang="en">Pati, Umi Khaerah</dc:creator>
	<dc:creator xml:lang="en">Indrajat, Heri</dc:creator>
	<dc:subject xml:lang="en">CBDC</dc:subject>
	<dc:subject xml:lang="en">competition</dc:subject>
	<dc:subject xml:lang="en">bank</dc:subject>
	<dc:subject xml:lang="en">fintech</dc:subject>
	<dc:description xml:lang="en">This study investigates the possible consequences of Indonesia's Digital Rupiah on the future landscape of banks and FinTech companies. Our findings indicate that the advent of Central Bank Digital Currencies (CBDCs) may create an unlevel playing field between banks and FinTech firms. With the potential for intermediaries, including banks and non-bank institutions, to gain wholesale access to the Digital Rupiah, heightened competition could ensue, posing a risk to the stability of commercial banks, even extending to state-owned entities. Policymakers in Indonesia must create fair policies that promote competition among all stakeholders while strategically positioning state-owned banks to ensure economic stability and sovereignty. Drawing inspiration from Niklas Luhmann's framework of law as a social system, which emphasizes the balance between openness and closedness, and incorporating Julia Black's principle-based approach to regulation, we propose a regulatory framework and interaction pattern between bank and fintech. This framework aims to strike a balance between the needs of banks and FinTech firms by integrating elements of entity-based and activity-based regulation.</dc:description>
	<dc:publisher xml:lang="en">Universitas Negeri Semarang</dc:publisher>
	<dc:date>2025-08-31</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.unnes.ac.id/journals/jils/article/view/19342</dc:identifier>
	<dc:identifier>10.15294/jils.v10i1.19342</dc:identifier>
	<dc:source xml:lang="en">Journal of Indonesian Legal Studies; Vol. 10 No. 1 (2025): Legal Transformation and Policy Challenges in Indonesia: Navigating Technology, Democracy, and Social Change; 257-294</dc:source>
	<dc:source>2548-1592</dc:source>
	<dc:source>2548-1584</dc:source>
	<dc:source>10.15294/jils.v10i1</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.unnes.ac.id/journals/jils/article/view/19342/6002</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2025 Umi Khaerah Pati, Heri Indrajat (Author)</dc:rights>
	<dc:rights xml:lang="en">https://creativecommons.org/licenses/by-sa/4.0</dc:rights>
</oai_dc:dc>