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The processes included converting reserve account balances into digital Rupiah and vice versa, ensuring seamless interoperability with Bank Indonesias Real-Time Gross Settlement (BI-RTGS) system. The PoC demonstrated the transformative potential of DLT-based systems in improving liquiditymanagement.
This PoC involved executing real-time cross-border test transactions between various Central Bank Digital Currency (CBDC) systems. The project tested the feasibility of conducting multilateral cross-currency transfers through the UDPN, involving both Distributed Ledger Technology (DLT) and non-DLT-based CBDC technologies.
The Practicalities of Cross-Border Payments in a Faster Payments World also highlights the challenges faced by fintech companies, providing insights into regulatory compliance, security, foreign exchange rate risks, lack of transparency, high costs, interoperability, data privacy, competition with financial institutions, and liquiditymanagement.
This marks a critical milestone in the exploration of a Central Bank Digital Currency (CBDC). The PoC findings also revealed that DLT-based solutions could enhance liquiditymanagement and security, ensuring seamless integration with both domestic and cross-border systems.
It introduces a richer, more structured data format for payment messages, designed to enhance interoperability, increase efficiency, and reduce ambiguity in financial communications. T+1 also raises challenges around funding and liquiditymanagement, especially for cross-border trades involving time zone differences or currency conversions.
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