Indonesian central bank publishes digital rupiah whitepaper to establish wholesale CBDC first
Indonesia’s central bank has published a whitepaper outlining its ambitions for a central bank digital currency (CBDC) as part of its “digital transformation” efforts.
Project Garuda, the national drive to build a digital rupiah, would be carried out in three phases, with the wholesale digital rupiah being investigated first, according to the whitepaper issued by Bank Indonesia on Wednesday.
The agency would subsequently test the digital rupiah for retail usage and “create use cases for distribution and collection,” it was said.
For the central bank to design cross-border transactions, cooperation with the international central banking community and institutions is vital.
Governor of the Bank of Indonesia Perry Warjiyo said in the whitepaper that the issuing of CBDCs is not a simple operation since central banks must “carefully consider CBDC design elements by weighing the advantages against the related risk.”
A number of Asian nations are in the process of creating their own CBDCs, with China’s e-CNY considered the most advanced of the top economies currently evaluating the idea.