Bank Indonesia has successfully concluded the Proof of Concept (PoC) for its Wholesale Rupiah Digital Cash Ledger.

This effort propels the nation’s Central Bank Digital Currency (CBDC) initiative forward through Project Garuda.

Governor Perry Warjiyo of Bank Indonesia announced the completion of the “Immediate State,” which signifies the first phase of exploring the Rupiah Digital.

This progress aligns with the bank’s responsibility as Indonesia’s exclusive 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 evolution of the digital financial sector,” stated Warjiyo in the official announcement.

As noted by Bank Indonesia economist Fransiskus Xaverius Tyas Prasaja, the PoC validated the essential technical competencies utilizing distributed ledger technology (DLT). The testing demonstrated that DLT-based solutions could effectively meet the Rupiah Digital business model’s requirements.

The technical implementation involved evaluations across two DLT platforms: Corda, crafted by R3, and Hyperledger Besu, developed by Kaleido. Both platforms underwent testing through 55 scenarios, emphasizing three principal business processes: issuance, redemption, and fund transfer.

The PoC indicated that the DLT platforms successfully interfaced with traditional systems, adhering to existing standards as well as the ISO 20022 standard. The use of smart contracts enhanced transaction efficiency and provided greater flexibility for future Rupiah Digital developments.

The central bank’s whitepaper, titled “Project Garuda: Navigating the Rupiah Digital Architecture,” outlines two remaining phases – the Intermediate State and End State – within Indonesia’s CBDC development strategy. The successful completion of this initial phase positions Indonesia among the increasing number of countries actively pursuing digital currency initiatives.

Bank Indonesia underscores that the Rupiah Digital will be integrated with current payment systems and financial market infrastructure, facilitating both domestic and cross-border transactions.

The results from the PoC have pinpointed essential areas for further investigation, including privacy mechanisms, liquidity management protocols, and multi-validator deployment strategies. This development represents a significant advancement in Indonesia’s digital financial infrastructure.