Bank Indonesia's 2024 Digital Rupiah Trial with Blockchain
Bank Indonesia plans to trial its digital rupiah, a central bank digital currency (CBDC), in 2024, utilizing blockchain technology.
The focus initially is on wholesale interbank settlement, aiming to enhance efficiency in payments between banks and the central bank.
Collaboration with large financial institutions is underway for input and feedback, with an emphasis on interoperability with other central bank digital currencies.
The digital rupiah will be experimented with on two tracks: retail for direct consumer use and wholesale for more efficient interbank transactions via blockchain.
Analysts highlight CBDC advantages, including full central bank backing, increased security, and lower volatility, but caution about potential impacts on traditional banking services.
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