Central bank plans to make CBDC 'only legal digital tender' in Indonesia, says gov

Bank of Indonesia politician Perry Warjiyo has announced developments successful its plans to motorboat a cardinal slope integer currency, oregon CBDC, for “various integer economical and fiscal transactions.”

In a Dec. 5 code astatine the cardinal bank’s yearly meeting, Warjiyo said the slope planned to merchandise details connected the conceptual plan of a integer rupiah — a currency the equivalent of the country’s fiat — and unfastened the substance to nationalist comment. According to the governor, the Bank of Indonesia intended for the integer rupiah to beryllium “integrated, interconnected, and interoperable” with different country’s CBDCs pursuing discussions with cardinal slope officials.

The CBDC initiative, called Project Garuda, volition commencement with the motorboat of a wholesale integer rupiah for “use cases of issuance, redemption, and interbank money transfer” followed by “monetary operations and fiscal marketplace development.” The project’s achromatic insubstantial stated the 3rd signifier volition woody with end-to-end transactions betwixt wholesale and retail integer rupiah users.

“Collaboration and synergy connected nationalist and planetary level is captious to the improvement of Digital Rupiah,” said Warjiyo.

Digital rupiah roadmap. Source: Bank of Indonesia

Related: Indonesia’s cryptocurrency assemblage successful 2022: An overview

Indonesia imposed a broad ban connected crypto payments starting successful 2017, portion trading successful integer assets mostly remained ineligible successful the state arsenic regulated nether the Commodity Futures Trading Regulatory Agency. Warjiyo archetypal announced plans for Indonesia to present a CBDC successful May 2021 but did not supply a circumstantial timeline connected the integer currency’s release.