- The Digital Rupiah may also be used for transactions outside of Indonesia.
- The CBDC will be introduced in three stages, as stated by the Central Bank.
Beginning with domestic bank-to-bank transactions, Indonesia is advancing its “Project Garuda” plans for a central bank digital currency (CBDC) called Digital Rupiah. The official introduction of the Digital Rupiah design happened last week by the Bank of Indonesia.
In the meanwhile, other large economies like India have been trying out CBDCs, so this is timely. On Monday, Central Bank Governor Perry Warjiyo remarked in a press conference, “Digital rupiah is inevitable. It’s the transaction tool of the future.”
Multiple Use-cases
During a panel discussion on Indonesia’s digital currency, the “Digital Rupiah,” Governor Perry said that the CBDC will be built on a technological platform that is interoperable with digital currencies issued by other central banks.
Interestingly, Perry continued by saying that the digital rupiah money would be utilized to purchase goods in the Metaverse in the future. This includes making sure that the Digital Rupiah may be used for transactions outside of Indonesia.
Furthermore, Perry said, the world’s central banks will come to terms with the exchange rates used by digital currencies. In addition to overseeing operations and managing cyber risks and cash flows, this agreement will also handle these matters.
The CBDC will be introduced in three stages, as stated by the Central Bank of Indonesia. The first is a wholesale CBDC product used by major financial institutions to move cash among themselves or with the central bank.
The CBDC will be used more widely in the interbank money market and in monetary operations when the first rollout phase is complete. The last step is to make the Digital Rupiah usable by everyday customers for transactions ranging from online purchases to wire transfers.
