Complete explanation of what the BI Digital Rupiah is, will be published in 2024 Tech – 9 hours ago


Jakarta, CNBC Indonesia – Indonesia is just waiting for the time to have digital rupiah. Bank Indonesia (BI) has accelerated the digital payment system in 2024, one of which is digital money as the only legal means of digital payment in the country.

BI Governor Perry Warjiyo stated this at the 2023 BI Annual Meeting (PTBI). He emphasized that the publication of the first stage of the Digital Rupiah road map will be carried out next year.

BI will create a prototype to test ideas or concepts for developing software as the backbone of the Digital Rupiah. This stage is also called “proof of concept”.


In it, BI will build ‘Khazanah Digital Rupiah’, namely a platform that can be accessed by selected banks and non-banks or what are called ‘wholesalers’ and ‘retailers’.

Rupiah Digital wholesale (w-Rupiah Digital) has limited access coverage and is only distributed for settlement of wholesale transactions such as monetary operations, forex market transactions and money market transactions.

Meanwhile, retail Digital Rupiah (r-Rupiah Digital) has access coverage that is open to the public and distributed for various retail transactions, both in the form of payment and transfer transactions, by personal/individuals and businesses (merchants and corporations).

To understand the concept of digital rupiah, people need to understand the difference between digital rupiah and digital wallets or crypto money.

The following is the explanation:

1. The difference between digital rupiah and bitcoin and e-wallet

Currently, there are many digital payment instruments available in Indonesia. For example, electronic payments via digital wallets (e-Wallets) such as GoPay, Ovo, Dana, etc.

Apart from that, there are also digital money instruments that are widely used for investing, such as cryptocurrencies.

The basic differences can be seen from the authority that issues the money, format, security guarantee, transparency of customer identity, transaction recording structure, and risks.

Rupiah Digital is a Central Bank Digital Currency (CBDC) developed by BI. The CBDC concept itself has begun to be adopted by central banks in several countries in recent years.

According to a report released by the firm Deloitte, CBDC is a response from world monetary institutions to technological developments in the financial sector. One of them is high public interest in cryptocurrencies and other digital payment instruments.

CBDC is considered an innovation in the digital financial sector, so that the circulation of money in society can be more effective and efficient, but secure because it is protected by the legal financial authorities in each country.

Digital wallet platforms that have been popularly used by Indonesians, such as GoPay, Ovo, Dana, et al, are actually physical paper money and metal that are distributed via digital platforms.

Digital wallets are different from currency, because their portion is only a storage place. The same is true for storage in mobile banking provided by each bank.

The difference is, a more ‘modern’ digital wallet can be used to carry out many transaction instruments through one door. Starting from ordering food, transportation services, to investing in one application.

Meanwhile, Digital Rupiah is money that is actually issued virtually and stored via a digital platform. Digital rupiah cannot be withdrawn in physical form.

The recording structure is also different. Physical money, even if it is stored in a digital wallet, uses a centralized manual recording method.

This means that the track record of money transactions can only be known by the authority that issued the money and the party carrying out the transaction.

Meanwhile, the digital Rupiah uses a centralized and decentralized structure. The recording is real-time and more transparent, so that the track record of money movements can be recorded by the system automatically.

This is made possible by the use of blockchain technology in Digital Rupiah, the same as that used in cryptocurrencies. The difference is, Digital Rupiah is issued by a legitimate financial authority, so it is protected by law and safer.

Meanwhile, the cryptocurrencies in circulation have been developed privately. The recording structure is completely decentralized, but not transparent in terms of customer identity.

As a result, even though money transactions are recorded in real-time, the value of money tends to be volatile because customer identities can be made anonymous.

Private development without interference from legal authorities also allows crypto issuance to be more controlled by algorithms.

2. Digital Rupiah Roadmap

BI has defined that national digital economic and financial development (EKD) aims to support sustainable economic growth. Utilization of technology will increase the volume and frequency of digital payment transactions.

In addition, stable, modern, safe and reliable payment and money market infrastructure in accordance with international standards can also be implemented.

Currently, BI is formulating a proof of concept for the issuance of the Digital Rupiah, after the concept design has been published and received input from industry and the public.

The Digital Rupiah ‘wholesaler’ business model will be adopted, so that BI as the central bank will focus more on the issuance and circulation of the virtual currency through the Digital Rupiah Khazanah which will be built.

Then, use for retail transactions by the public will be handed over to the selected banks and non-banks later. Currently, BI is also conducting studies to select compatible platforms.

In simple terms, in the first stage, the Garuda Rupiah Digital Project will start with ‘wholesale-CBDC’ for issuance, destruction and inter-bank transfers.

In the second phase, wholesale-CBDC will be expanded to support monetary operations and financial market development.

Then, in the third stage, wholesale-CBDC will interact with retail-CBDC end-to-end or be used by the general public for their daily transaction needs.

[Gambas:Video CNBC]

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