Indonesia’s central bank, Bank Indonesia (BI), is preparing to launch a digital rupiah backed by tokenized government bonds, creating one of the world’s first hybrid models combining CBDC and stablecoin features.
Announced by Governor Perry Warjiyo at the 2025 Indonesia Digital Finance and Economy Festival, the initiative—part of Project Garuda—will link each unit of digital rupiah to digital central bank securities, or tokenized government bonds (SBN).
“We will issue a digital rupiah backed by government bonds, effectively a national stablecoin,” Warjiyo said. This design ensures that every digital rupiah is anchored to a tangible state-backed asset, enhancing trust, stability, and transparency. It also positions Indonesia as a global innovator in sovereign digital currencies.
The framework builds on BI’s Project Garuda proof-of-concept completed in 2024, which tested Corda and Hyperledger Besu blockchain platforms. Initially, BI will roll out a wholesale version for interbank transfers, followed by a retail release for the public.
Officials say the bond-backed model will improve payment efficiency, monetary control, and market liquidity, while reducing reliance on private stablecoins and protecting monetary sovereignty.
Indonesia’s crypto sector continues to surge, surpassing 475 trillion rupiah ($30B) in transactions by late 2024, a 352% yearly rise, reinforcing the country’s push toward a digitally integrated financial ecosystem.
Image Credit: Pixabay
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