BI Gives Latest Update Regarding Digital Rupiah

Indonesia Rupiah

The era of digitalization has made Bank Indonesia (BI) issue the latest breakthrough, digital money. BI revealed that it is still preparing to issue the Central Bank Digital Currency (CBDC) or digital rupiah. The latest update, they will soon release a white paper on the digital rupiah concept.

BI Governor Perry Warjiyo, Thursday (20/20), explained, “We will soon publish a consultative paper on the wholesaler CBDC concept and prepare it and the requirements to be able to fulfill 3i (interoperability, inter-connectivity, and integration) of domestic payment infrastructure.”

Perry’s domestic payment infrastructure includes BI FAST, RTGS, financial markets, and GPN. “It is also related to cross-border payments,” he said.

The rupiah digital development white paper contains a report on the background and plans for CBDC development.

The issuance of this White Paper is a form of communication to the public regarding the rupiah digital development plan and to obtain input from various parties.

BI Deputy Governor Doni P Joewono explained, in the issuance of digital rupiah, 3 important things are prerequisites.

First, the digital rupiah design does not disrupt monetary and financial system stability. Second, the digital rupiah design must be integrated, interoperable, and interconnectivity, with financial markets and payment system infrastructure.

The third and last important thing, namely the importance of the technology used, whether DLT, blockchain, or non-DLT.

“So we are currently preparing a white paper and we will prepare the 3i for the payment system infrastructure as the first step for CBDC,” said Doni.

As for the implementation of CBDC as a cross-border or cross-border with other countries, Doni said it had begun with the QRIS front end which was already connected to Thailand.

“Now we are in the pipeline with Malaysia and Singapore. Of course, later we will also explore a fast payment system with ASEAN 5,” said Doni.

“Some countries that have fast payments are Singapore, Malaysia, and Thailand. In the future with the Philippines. ASEAN 5 will be a pioneer in this cross-border,” he explained.