BI’s wCBDC Proof of Concept Results

Bank Indonesia (BI) has published a paper on a technical proof of concept (PoC) for a wholesale CBDC (wCBDC). BI had compared R3’s Corda enterprise blockchain and Ethereum-based Hyperledger Besu, but the report did not make a definitive choice at this stage.

BI has divided the project into three phases. First conduct basic issuance, redemption and funds transfer using a wCBDC. Second explore integration between the wCBDC and a digital securities ledger. Technical interoperability was investigated. Third is to use the wCBDC for cross border payments, and potentially as the foundation of a retail CBDC.

Progress to date is that BI has now confirmed that Distributed Ledger Technology (DLT) can support a wCBDC.

It has demonstrated that smart contracts can help with flexibility and efficiency. It has established that connectivity with conventional systems is possible using ISO 20022.