Bank Indonesia has officially completed the Proof of Concept (PoC) for its Wholesale Rupiah Digital Cash Ledger, marking a significant milestone in the country’s Central Bank Digital Currency (CBDC) development under Project Garuda.
In a recent announcement, Bank Indonesia Governor highlighted the completion of the “Immediate State,” which represents the initial phase of the Rupiah Digital exploration journey. This initiative aligns with the central bank’s mandate as Indonesia’s sole currency issuer and addresses the rapid expansion of the digital financial economy.
“This achievement is a testament to Bank Indonesia’s dedication to advancing the Rupiah Digital in response to the rapid growth of the digital financial sector,” said the Governor.
Economist from Bank Indonesia noted that the PoC successfully validated the necessary technical capabilities using distributed ledger technology (DLT). The testing phase demonstrated that DLT-based solutions effectively met the requirements of the Rupiah Digital business model.
The technical implementation involved rigorous testing across two DLT platforms, focusing on key processes such as issuance, redemption, and fund transfer. The PoC indicated that these DLT platforms adeptly integrated with conventional systems, utilizing existing standards—including the ISO 20022 standard. Notably, smart contracts exhibited enhanced transaction efficiency and flexibility for future development of the Rupiah Digital.
The central bank’s whitepaper, “Project Garuda: Navigating the Rupiah Digital Architecture,” outlines the upcoming phases: the Intermediate State and End State, which are crucial to Indonesia’s CBDC development roadmap. The successful completion of this initial phase positions Indonesia among the growing number of countries advancing their digital currency initiatives.
Bank Indonesia emphasizes that the Rupiah Digital will be integrated with existing payment systems and financial market infrastructures, facilitating both domestic and cross-border transactions.
The PoC results have pinpointed critical areas for further exploration, including privacy mechanisms, liquidity management protocols, and multi-validator deployment strategies. This development represents a pivotal step forward in enhancing Indonesia’s digital financial infrastructure.
