Bank Indonesia has successfully completed the Proof of Concept (PoC) for its Wholesale Rupiah Digital Cash Ledger.
This initiative propels the country’s Central Bank Digital Currency (CBDC) development through Project Garuda.
Bank Indonesia Governor Perry Warjiyo announced that the central bank has reached the “Immediate State,” marking the first phase of exploring the Rupiah Digital.
This development aligns with the bank’s role as Indonesia’s sole currency issuer and addresses the swift expansion of the digital financial economy.
“This milestone reflects Bank Indonesia’s dedication to advancing the Rupiah Digital in light of the rapid growth of the digital financial landscape,” Warjiyo stated in an official report.
As noted by Bank Indonesia economist Fransiskus Xaverius Tyas Prasaja, the PoC confirmed the necessary technical capabilities utilizing distributed ledger technology (DLT). The testing phase demonstrated that DLT-based solutions could effectively fulfill the requirements of the Rupiah Digital business model.
The technical implementation included trials across two DLT platforms: Corda, developed by R3, and Hyperledger Besu, created by Kaleido. Both platforms underwent testing through 55 scenarios, emphasizing three main business processes: issuance, redemption, and fund transfer.
The PoC demonstrated successful integration of the DLT platforms with traditional systems using established standards and the ISO 20022 standard. Additionally, smart contracts exhibited improved transaction efficiency and adaptability for future Rupiah Digital advancements.
The central bank’s whitepaper, titled “Project Garuda: Navigating the Rupiah Digital Architecture,” outlines two remaining phases – the Intermediate State and End State – in Indonesia’s CBDC development roadmap. The successful finalization of this initial phase places Indonesia among the growing number of countries progressing in their digital currency endeavors.
Bank Indonesia highlights that the Rupiah Digital will be integrated with existing payment systems and financial market infrastructure, facilitating both domestic and cross-border transactions.
The PoC results have pinpointed key areas for further investigation, including privacy mechanisms, liquidity management strategies, and multi-validator deployment methods. This development marks a significant step toward enhancing Indonesia’s digital financial infrastructure.
