Bank Indonesia has just reached an important milestone in its digital currency exploration with the successful completion of the first phase of Proyek Garuda. This phase, known as the Proof of Concept (PoC), focused on testing the wholesale cash ledger for Rupiah Digital, Indonesia's Central Bank Digital Currency (CBDC).

Proyek Garuda, launched in 2022, has been an ongoing effort to understand and develop a digital version of the Indonesian Rupiah. Before this PoC, the initiative had already released a white paper, consultative papers, and gathered feedback through public consultations. Now, with the PoC, the goal was to see if the technology behind the digital currency could integrate seamlessly with existing financial systems.

The PoC aimed to evaluate a few key things: whether the technology was ready, how secure transactions would be, and how well it could connect with the country’s current payment systems. The team used Distributed Ledger Technology (DLT) for the testing, and the results were promising. It showed that DLT could meet the technical and business needs for the wholesale digital currency ledger.

A representative from Bank Indonesia said, “The PoC has proven that the DLT technology can work for our future needs.” This success is a crucial step forward, laying the groundwork for what’s to come.

While the PoC is just one part of the project, its results will play a major role in shaping the future of Rupiah Digital. The insights gained will guide further development in both technology and business strategy as the project progresses.

What stands out about Proyek Garuda is its transparency and collaboration. Bank Indonesia has worked closely with a variety of stakeholders to make sure the digital Rupiah is secure and ready to launch smoothly.

This PoC is a solid foundation, but there's still more testing to come. The positive results so far indicate a promising future for digital payments in Indonesia, and the country is now positioning itself to be a leader in digital finance in the region.