Diving into the hot topics of CDBC (Central Bank Digital Currency) in the global tech-finance scene, Indonesia is running on a digital currency path called Project Garuda. Project Garuda, a digital currency initiative spearheaded by Bank Indonesia is paving the way for a future with a sovereign Indonesian Rupiah in the digital realm. This nationwide project has garnered significant anticipation as it explores the potential of becoming an official payment option. As a first step towards this digital transformation journey, Bank Indonesia released a White Paper outlining the development of Digital Rupiah. As quoted from MSN, Digital Rupiah will have a digital format that enables payment like the usual bills and coins, e-money, also debit and credit cards. Unlike these methods, however, it will be issued solely by Bank Indonesia, the central bank. This secure and innovative payment system is targeted towards millennials, Gen Zs, and up-and-coming businesses. It will be available in two forms: wholesale, primarily used for international transactions and monetary operations by financial institutions, and retail, designed for everyday purchases by individuals. Importantly, the Digital Rupiah is a distinct concept from crypto assets and stablecoins, even though it shares some digital characteristics. Digital Rupiah’s sole difference with crypto currencies and e-wallets is the scope of authority it has, bearing in mind it is only issued by Bank Indonesia. This means that it has a different format system, security assurance, transparency in customer’s identity and record of transaction, also risks for payment. While your e-wallet can have features to do various transactions, Digital Rupiah is used as an official currency protected by the law as a recurring payment option for regular or bigger transactions. However, since it comes in a digital format, Digital Rupiah can be very volatile on its values and algorithms. In the recent development of Digital Rupiah, Bank Indonesia conducted their first trial on changing giro accounts placed in the central bank into a digital version. It is said to fill their blockchain system with distributed ledger technology (DLT). The current progress is reported to involve high-level actors in the finance industry. As quoted from Kontan, Bank Indonesia is opting for a hybrid payment system counting on Digital Rupiah as early as 2024. The Digital Rupiah promises to be a game-changer for Indonesia's financial landscape and economic growth. By fostering new economic opportunities and facilitating a seamless transition to a digital future, it represents a significant step forward. So, are you excited to see the prosperous future of Indonesia and use this Digital Rupiah? Source: - Bank Indonesia: Siap-siap! Rupiah Digital Bakal Gantikan Uang Kertas dan Logam - CNBC Indonesia: Rupiah Digital BI Terbit 2024, Ini Bedanya dari Bitcoin-GoPay - Kontan: Bank Indonesia Still Testing Digital Rupiah, To Be Launched This Year?