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Preparing Indonesian central bank digital currency under Garuda project
Digital Rupiah should contribute to increasing financial inclusion by helping more people to access financial services and participate in the economy.
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A picture taken on Feb. 6, 2018, shows a visual representation of the digital cryptocurrency bitcoin, at the Bitcoin Change shop in the Israeli city of Tel Aviv. (AFP/Jack Guez )
E
very June 1 we commemorate Pancasila Day (the birthday of Pancasila), which marks the first time the initial concept of Pancasila was introduced as the state ideology of Indonesia. The embodiment of Pancasila ideology is symbolized by the mythical Garuda bird as one of national identity.
Using the Garuda Project headline, Bank Indonesia (BI) initiated the issuance of the Indonesian Central Bank Digital Currency (CBDC), under the name Digital Rupiah, as an endeavor to maintain rupiah sovereignty in the digital era.
The "birth" of Digital Rupiah in the midst of the current era of digital disruption is not a simple matter. A measurable and appropriate design of Digital Rupiah is required, so that its presence will not have a counterproductive impact on the national economy.
In the White Paper on the development of Digital Rupiah, it is stated Digital Rupiah will be issued in two types, namely Digital Rupiah wholesale (w-Digital Rupiah) and Digital Rupiah retail (r-Digital Rupiah).
W-Digital Rupiah has limited access coverage and is only distributed for wholesale transaction settlements such as monetary operations, foreign exchange market transactions and money market transactions. Meanwhile, the scope of r-Digital Rupiah access is open to the public and distributed for various retail transactions, both in the form of payment transactions and transfers by personal/individuals or businesses (merchants and corporations).
The entire Digital Rupiah business model will be built in an integrated manner from end to end based on the aspects of integration, interoperability and interconnection (3i). Digital Rupiah is expected to fill the limitations of existing currencies by acting as a core instrument for BI in carrying out its mandate in the digital era.
Then, what are the important features and things are considered to be offered by Digital Rupiah to function as intended and be widely adopted?
