Bank Indonesia, Indonesia’s central bank, has released a whitepaper that underlines plans for its central bank digital currency (CBDC).
According to Yahoo, the launch of the CBDC plans comes as the company looks to advance digital transformation.
The project – named Project Garuda – will be carried out in three stages, with the wholesale digital rupiah being experimented with first.
Bank Indonesia said it will then test the digital rupiah for retail use and then develop use cases for distribution and collection.
Furthermore, the central bank said that the synergy with the international central banking community and institutions is essential for it to design cross-border transactions.
Bank Indonesia Governor Perry Warjiyo remarked in the whitepaper that the issuance of the CBDC is not an easy task, as central banks need to ‘prudently contemplate on CBDC design features by balancing the benefits with its associated risk’.
The so-called ‘Venus initiative’ saw the bond issued by the European Investment Bank under Luxembourg law, and then settled using a tokenised representation of euro central bank money.
The Bank appointed Goldman Sachs, Santander and Société Générale as banking syndication in order to issue and distribute the digital native bonds.
Also, a UK consortium of private sector firms recently began a year-long pilot scheme to test cross-border payments and provide recommendations to the Bank of England.
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Copyright © 2018 RegTech Analyst