E-Money and Banknote Counterfeiting: Assessing Digital Payment Systems in Indonesia’s Crime Prevention

The Indonesian government, through Bank Indonesia, introduced the Indonesian Payment System Blueprint 2025 to lead the nation's transition into the digital economy and foster fintech innovation. As electronic money (e-money) gains prominence in daily transactions, this study investigates whether e-money impacts the prevalence of banknote counterfeiting in Indonesia. Using a qualitative-descriptive approach, the research is grounded in Rational Choice Theory, Strain Theory, Economic Theory of Supply and Demand, and Financial Inclusion Theory to explore this potential relationship. Findings reveal a lack of empirical evidence supporting a direct link between the rise of e-money usage and a reduction in banknote counterfeiting. Despite the growing adoption of digital payments, other factors—such as improved currency security features and law enforcement efforts—continue to play a more significant role in combating counterfeit activities. The study recommends that policies aimed at eradicating banknote counterfeiting should focus on strengthening these existing measures, as no conclusive evidence suggests that the increasing use of e-money alone can significantly curb counterfeiting activities. Further research is needed to monitor long-term trends as digital payment systems evolve.