Central Bank of Indonesia Publishes New CBDC White Paper, Formalizes CBDC Plans

Indonesia’s central bank has formalized plans for a central bank digital currency (CBDC), with its new CBDC white paper outlining how “shadow money” and “shadow central banks” can facilitate unregulated credit creation around the world through crypto, Blockworks reported. . Bank Indonesia’s CBDC initiative, Project Garuda, will first examine potential use cases for a wholesale CBDC before expanding to include retail testing. Labeled "advanced," the program will roll out in three phases, a representative said. First, test the redemption and transfer of wholesale CBDC. Then, financial market transactions, including money market business models, will be explored. The final phase will explore the integration of an end-to-end wholesale digital rupee into the financial ecosystem, while further experimenting with a retail CBDC. The spokesman did not provide a timeline for the project.