BI Calls Phase 3 Blue Prints Nexus Project Has Been Completed

Governor of Bank Indonesia Perry Warjiyo. (Photo: Doc. ANTARA)

JAKARTA - Bank Indonesia (BI), Bank for International Settlements (BIS), together with Bank Negara Malaysia, Bangko Sentral ng Pilipinas, Monetary Authority of Singapore, the Bank of Thailand has completed a phase 3 blueprint (blue print) of the Nexus Project.

"This blue plaque allows participating countries to conduct an interconnection of domestic instant payments owned by participants in the global arena smoothly," said BI Governor Perry Warjiyo as quoted by ANTARA, Monday, July 1.

Perry said the goal of Nexus is to achieve payments between countries that can be implemented based on a strong, inclusive policy framework, with effective risk management. "This vision is in line with the wider public interest in providing efficient and affordable inter-state payment solutions for individuals and business actors around the world, so as to increase global economic participation," he said.

By prioritizing these principles, the inter-state payment system will be smoother and safer so that it can encourage economic growth, financial inclusion, and sustainable development.

The Nexus project is an initiative of the BIS Innovation Hub which aims to increase payments between countries by connecting various domestic instant payment systems (IPS) globally.

The Nexus project is the first BIS Innovation Hub project in the field of payment to implementation.

BIS acts as an advisor to the Nexus Project as well as preparing an operational scheme and opening up opportunities for new participants from around the world.

BIS General Manager Agustwas Carstens said Nexus was designed to standardize connectivity methods so that domestic IPS can connect with each other.

Nexus Standardization allows a country's operator to create only one connection to the Nexus, without having to create a special connection with every country it wants to connect.

Thus, enough with a single connection, the IPS of participating countries can connect with each other.

We hope that partners in Nexus are successful in developing projects from concept to reality. This is the first project for the BIS Innovation Hub with the central bank and IPS operators towards implementation," said Agust happened.

When implemented, the project will increase payments between countries in line with the G20 inter-state payment program, as well as a mission to realize public interests in the field of technology in order to support the central bank and improve the function of the financial system.

Together with first-wave participating countries, Nexus has the potential to connect markets with 1.7 billion people worldwide that allow them to make instant payments to each other easily and cheaply.

Furthermore, the Nexus Project will step into Phase 4 development with a focus on forming a new entity, namely the Nexus Scheme Organization (NSO), which will be responsible for managing the Nexus scheme, and continuing its mission to achieve international payments instantly.

Bank Indonesia will continue its participation as observers (observers) who play a role in observing the development of the project.