Bank Indonesia is looking for the best way forward to develop and integrate the digital Rupiah into its national economy. It has also released the CBDC’s whitepaper, available on its website.
As the CBDC wave continues to hit, Bank Indonesia is the latest to release a plan for its digital Rupiah. Indonesia’s CBDC whitepaper publication was on November 30, under the title ‘Project Garuda: Navigating the Architecture of the Digital Rupiah.’
After many delegations of what the role of blockchain and rising digital currencies will play in the future of central banks, Bank Indonesia saw it wise to implement a roadmap for the digital Rupiah.
So far, the crypto industry is a multi-billion dollar sector that continues to grow exponentially every day, despite several shortcomings since its invention. Developments of web 3.0 and decentralized finance are but a few of what the crypto space holds. Financial inclusion, despite background or geographical location, has never been so close in sight.
However, there is a hovering threat to traditional banking and money. Furthermore, the unregulated sector in most global regions is a worrying factor that encourages bad actors. For that reason, there are rising cases of scammers, money laundering, and terrorist funding.
As such, several central banks are on the path to creating CBDCs that ensure a more regulated environment while progressing with the industry. The process takes combined efforts to overcome challenges related to implementing CBDCs.
Developing the digital Rupiah
Bank Indonesia is using the main challenges facing CBDC implementation as its guiding principles in creating the digital Rupiah. Therefore, its roadmap includes focusing on 3 significant factors: Bank Indonesia as the only financial body able to issue Indonesian digital currency; the need for fast compounding of the national digital finance and economy; Bank Indonesia as a leading game-changer in the international space.
Next are the 3 objectives for creating and implementing the digital Rupiah: a key driver for Bank Indonesia to play its role in the digital era; complementing the fast compounding plan as a support system for national financial systems’ development; and a digital legal tender that supports the country’s fiat currency.
Lastly, Project Garuda will have three divisions for the successful launch of the digital Rupiah in the Indonesian economy: the immediate; the intermediate; the final stages. Upon the completion of the roadmap, the development will produce wholesale or retail tokens to support top banks and smaller banks and businesses, respectively.
