DailySun
Bank Indonesia has successfully finalized the Proof of Concept (PoC) for its Wholesale Rupiah Digital Cash Ledger.
This initiative propels the development of the country’s Central Bank Digital Currency (CBDC) through Project Garuda.
Announcing the completion, Bank Indonesia Governor Perry Warjiyo mentioned that the central bank has reached the “Immediate State,” which marks the first phase of exploring the Rupiah Digital.
This initiative is in line with the bank’s role as Indonesia’s exclusive currency issuer and responds to the swift expansion of the digital financial economy.
“This accomplishment reflects Bank Indonesia’s dedication to the Rupiah Digital’s development in light of the rapid growth of the digital financial landscape,” Warjiyo remarked in the official statement.
As per Bank Indonesia economist Fransiskus Xaverius Tyas Prasaja, the PoC has confirmed the necessary technical capabilities leveraging distributed ledger technology (DLT). The testing phase demonstrated that DLT solutions could effectively fulfill the demands of the Rupiah Digital business model.
The technical implementation included evaluations on two DLT platforms: Corda, created by R3, and Hyperledger Besu, developed by Kaleido. Testing comprised 55 scenarios, concentrating on three essential business processes: issuance, redemption, and fund transfer.
The PoC findings indicated that the DLT platforms effectively interfaced with established systems using current standards, including the ISO 20022 standard. Smart contracts were found to enhance transaction efficiency and provide greater adaptability for future Rupiah Digital developments.
The central bank’s whitepaper, titled “Project Garuda: Navigating the Rupiah Digital Architecture,” outlines the remaining two phases—the Intermediate State and End State—in Indonesia’s CBDC development strategy. The success of this initial phase places Indonesia alongside numerous nations that are actively enhancing their digital currency projects.
Bank Indonesia emphasizes that the Rupiah Digital will seamlessly integrate with current payment systems and financial market infrastructure, facilitating both domestic and international transactions.
The outcomes of the PoC have pinpointed essential areas for further investigation, such as privacy mechanisms, liquidity management protocols, and strategies for deploying multiple validators. This development signifies a critical progressive step toward enhancing Indonesia’s digital financial infrastructure.
