Digital Rupiah as Indonesia’s CBDC: Challenges, Opportunities, and Design of Project Garuda

Abstract

The global digital transformation of financial systems has encouraged many countries to develop Central Bank Digital Currencies (CBDCs) in response to the cashless society trend, cryptocurrencies, and the demand for payment efficiency. In Indonesia, the rise of digital transactions, the widespread use of e-wallets, and digital banking highlight the urgency of establishing the Digital Rupiah as an official instrument. This study employs a qualitative approach through library research to analyze the urgency, design, and implications of the Digital Rupiah under Bank Indonesia’s Garuda Project. Findings reveal that the Digital Rupiah could strengthen monetary sovereignty, enhance financial inclusion, and support national financial market integration. Nonetheless, significant challenges remain, including cybersecurity risks, infrastructure readiness, public literacy, and potential impacts on banking stability. This study emphasizes that the success of the Digital Rupiah requires synergy across technology, regulation, and public education. With careful planning, the Digital Rupiah could serve as a vital pillar in maintaining the relevance of Rupiah as a symbol and legal tender in the digital era.