The Indonesian Central Bank stated that its cryptocurrency will be functional in the Metaverse.
Indonesia’s central bank governor said that the country will roll out its digital currency, the Digital Rupiah CBDC, in three phases.
Last week, the Bank of Indonesia (Central bank) launched its design for Digital Rupiah as part of “Project Garuda”. The project entails pushing further plans for a Central Bank Digital Currency (CBDC). Transactions among local banks will be the first to use the currency.
With other countries already testing out their own versions of CBDCs, it was only a matter of time until Indonesia followed suit. In a briefing on Monday, Governor Perry Warjiyo for the central bank said: “Digital rupiah is inevitable. It’s the transaction tool of the future”.
Governor Perry stated that the CBDC will utilize a technology platform during an event on Digital Rupiah which will be compatible with other central bank digital currencies. “In terms of infrastructure, the digital rupiah can be integrated, interconnected and interoperable (with other CBDCs),” he said.
Interestingly, Perry mentioned that in the future, people will be able to use the digital rupiah currency to buy products in the Metaverse. To make this possible, Indonesia’s central bank is working on making sure that the Digital Rupiah can be used for cross-border payments.
Perry noted that part of the agreement among central banks will include regulating digital currencies’ exchange rates. Furthermore, they will oversee operational procedures, manage cyber risks and capital flows.
The Indonesian government will be releasing the digital rupiah in phases.
The Central Bank of Indonesia (CBI) has announced that it will be launching its central bank digital currency (CBDC) in three phases. The first phase will see the launch of a wholesale CBDC, which will be used by larger banks to settle payments among themselves or with the CBI.
In the next phase of the launch, CBDCs will be expanded for use in interbank money markets and monetary operations. In the last phase, Digital Rupiahs will be available to retail consumers for payments and fund transfers.
The central bank will initially restrict the use of the CBDC to certain qualified banks. These banks must first convert their reserves at the central bank to receive their Digital Rupiah tokens. Filianingsih Hendarta, head of payment systems policy said:
“This ensures the issuance of digital rupiah won’t impact the size of Bank Indonesia’s balance sheet, meaning it has a neutral monetary impact”.
Later, citizens of Indonesia who want to use CBDC will be able to exchange deposits and bank notes for it. Also, the central bank will give out the CBDC directly to end-users.
The wholesale CBDC will be based on tokens, while the retail CBDC will be account-based and also token-based. In a separate development, Indonesia is also planning to launch its crypto stock market by the end of this year.