🚀🚀🚀 Indonesia’s central bank eye #CBDC trial for 2024
Bank Indonesia (BI) has officially announced its intention to delve into central bank digital currency (CBDC) exploration in 2024, initiating full-scale trials in collaboration with major commercial banks.
According to Business Times, BI's CBDC initiative will concentrate on wholesale interbank settlement, leveraging #blockchain technology. The proposed CBDC, the digital rupiah, underwent preliminary studies and completed a proof-of-concept in 2022.
The upcoming pilot program will involve BI examining technological and regulatory frameworks to facilitate the rollout of the digital rupiah.
BI Governor Perry Warjiyo stated, "We have issued the proof-of-concept for the digital currency, and we expect to design the technology and infrastructure we will be using in the near future."
This pilot project builds on insights gathered from a public consultation with industry stakeholders. The results led to the decision to focus on a wholesale CBDC offering, ensuring the "rupiah's sovereignty in the digital era."
BI has enlisted the support of commercial banks and technical partners for its CBDC pilot. In addition to local interbank payments, the central bank plans to experiment with cross-border settlements, #Tokenization , and use cases in foreign exchange transactions and the metaverse.
The central bank aims for interoperability with CBDCs from other jurisdictions, suggesting a phased rollout. The initial phase will involve launching a digital rupiah for monetary operations and the money market before considering a retail CBDC.
Bank Indonesia's (BI) CBDC initiative coincides with heightened scrutiny on digital currencies. Indonesia is considering classifying them as securities and implementing stricter exchange regulations. A Ministry of Trade resolution mandates two-thirds of digital exchange directors to be in Indonesia, and there's exploration of a national digital currency exchange for industry uniformity.
Source - coingeek.com
