Indonesia’s Digital Rupiah Leaps Forward with Project Garuda

The Indonesian Central Bank has achieved a significant milestone in its quest to transform the nation’s financial ecosystem. The bank has reportedly completed the Proof of Concept (PoC) for its Wholesale digital rupiah Cash Ledger. This marks a key step in developing the nation’s Central Bank Digital Currency (CBDC). This achievement, part of the ambitious Project Garuda, marks the first phase of a multi-stage roadmap toward digital financial innovation. The Immediate State: A New Chapter for Digital Rupiah Governor Perry Warjiyo unveiled this milestone as the completion of the “Immediate State,” the foundational phase of the digital rupiah journey. As Indonesia’s sole currency issuer, the Bank of Indonesia launched this initiative to keep pace with the rapid growth of digital finance. This ensures that the Rupiah remains relevant in a modern, digital economy. In an official statement, Warjiyo emphasized the central bank’s commitment to meeting the needs of a growing digital economy. He affirmed efforts to keep the Rupiah relevant in the digital age. The PoC: Laying the Technical Foundation The Proof of Concept (PoC) tested how well digital rupiah could work using distributed ledger technology (DLT). Bank Indonesia economist Fransiskus Xaverius Tyas Prasaja led the testing of two key distributed ledger technology (DLT) platforms. This includes R3’s Corda and Kaleido’s Hyperledger Besu. The evaluation covered 55 scenarios to assess their performance in handling issuance, redemption, and fund transfers. These tests ensured the platforms could meet the technical needs of the digital rupiah initiative. The results showed that both platforms met the technical requirements and worked well with traditional systems and the ISO 20022 standard. Smart contracts performed exceptionally, improving transaction speed and flexibility. This success highlights the platforms’ potential for future upgrades. It also lays a solid foundation for advancing the digital Rupiah initiative. Notably, Project Garuda’s journey is still ongoing. Bank Indonesia’s “ Project Garuda: Navigating the Rupiah Digital Architecture” whitepaper outlines two upcoming phases. This includes the Intermediate State and the End State. The next stages will focus on improving privacy, managing liquidity, and using multi-validator systems. These efforts aim to strengthen the operational framework of digital rupiah. A Global Vision for the Digital Rupiah The digital rupiah is designed to be more than just a local currency. Bank Indonesia plans to integrate it with current payment systems and financial networks, supporting local and cross-border transactions. This vision supports global goals of connecting digital economies while keeping control of national currencies. Indonesia’s latest progress positions it as a key player in the fast-growing digital financial landscape. This comes as nations around the world race to develop their own CBDCs. With its advanced technology and clear strategy, Indonesia is positioning itself as a leader in digital currency innovation. The post Indonesia’s Digital Rupiah Leaps Forward with Project Garuda appeared first on TheCoinrise.com .