As the country seeks to “advance digital transformation,” Indonesia’s central bank has released a whitepaper outlining plans for its central bank digital currency (CBDC).
The central bank, Bank Indonesia, stated in a whitepaper released on Wednesday that Project Garuda, the national initiative to develop a digital rupiah, will be carried out in three stages, with wholesale digital rupiah being examined first.
The agency will then test the digital rupiah for retail use and develop use cases for distribution and collection, according to the statement.
The central bank also stated that it needs to collaborate with the international central banking community and institutions in order to design cross-border transactions.
In the whitepaper, Bank Indonesia Governor Perry Warjiyo stated that the issuance of the CBDC is a difficult task because central banks must prudently contemplate on CBDC design features by balancing the benefits with its associated risk.
A number of Asian countries are developing their own CBDCs, with China’s e-CNY considered the most advanced among other major economies testing the concept.