Indonesian Central Bank Governor Perry Warjiyo said at a press conference while presenting the annual transparency report, which will be launching the Rupiah Digital proof of concept by approximately July 2023.
In a series of assertions about the rupee strengtheningthe governor indicated that the Central Bank of Indonesia is pro-stability, ensuring that inflation will continue to drop for this year. According to the CPI data monitored by Datosmacro.com, review that inflation closed at 41.1%.
In relation to these data, since December 2022 the Governor of the Central Bank of Indonesia, has been showing signs of recognition of the one digital rupee as legal tenderand in the midst of the launch of the Bank Indonesia Transparency and Accountability Report 2022, expressed that the country is developing the digitization of payments and a digital rupee.
In this sense, he specified that two types will be issued, a wholesale digital rupee (w-Digital Rupiah) that can only be used in a limited manner by the parties designated by the Central Bank, and may be distributed exclusively attending to wholesale transactions.
The second type of digital rupee (r-Digital Rupiah) will be the retailand will be aimed at the general public and will be marketed exclusively in retail transactions.
Stop now November 2022, the Central Bank of Indonesia digital currency (CBDC) white paper was publishedthe Garuda Digital Project, as it was known at the time, is an amalgamation between various digital rupiah proposals, in which it focuses both on the two types of digital rupees and on the technology that will be used to develop it.
The governor further explained that The development of the digital currency will be comprised of three stages. The first phase or stage will be the issuance of w-Digital Rupiah, and this will comply issuance and transfer functions and services of funds between the parties authorized by the central bank. In the second stage, the w-Digital Rupiah will be used to support transactions in financial markets.
Finally, the governor indicated, that it will be the testing stage for integrate end-to-end the w-Digital Rupiah with the r-Digital Rupiah. With this style of implementation, they seek to explore various design alternatives for the digital rupiah in order to guarantee a high added value.
He further explained that the project does not stop therethe idea of having a currency issued by the central bank allows them to create opportunities, and continue to develop and innovate digital assets, so that the tokenization of securities could be within the same platform of the digital rupiah.
The development of smart contracts, with high security standards, could allow a high level of financial efficiency to existand with this to be able to delve into the global financial markets, as well as the optimization of a national financial service.
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