Breaking News

Bitcoin was banned in Indonesia, the media called for Bitcoiners to exit promptly

The Bank of Indonesia will issue a law banning the use of virtual currencies.
Indonesian local media reported in the report. Indonesia's central bank appears to be pushing ahead with a crypto-currency ban , including "a party dealing with digital currency transactions." As a result, at least one domestic media has issued a document calling on holders to convert bitcoin to legal currency as soon as possible to avoid being punished.

Bank Indonesia blocked bitcoin

Agus Martowardojo, Bank Indonesia Governor, pointed out in a recent meeting:

We believe that digital technologies will bring about huge changes and great uncertainties for the future economic model. As decision makers, we need to foresee the progress that this fundamental change has caused.
The reporter believes that the central bank to make this decision is to "maintain the French rupee in Indonesia's dominance."

The local media regularly repeat clichés, such as cryptocurrencies being used for money laundering and terrorist financing, in order to discourage Indonesian society from accepting this decentered currency.

The ban is implicated in a wide range of areas. The central bank also plans to "prohibit arbitrage opportunities, prohibit unauthorized participants from engaging in improper commercial activities and business management to undermine the industrial structure."

Banking service penetration

Indonesia is the largest economy in Southeast Asia and the largest Muslim enclave in the world. There are not many people with bank accounts here, and in 2014 data show that adults who hold bank accounts make up just one-third of the country's population. Only 20% of the poor in the country have access to bank funds. In recent years, the Indonesian government has organized many activities and initiated a number of projects aimed at raising public awareness of financial institutions.

These basic facts more or less explain why the government banned bitcoin. In fact, bitcoin reduces the public's reliance on the state and government.

The ban is reported to "ban virtual currency such as bitcoin that does not have a clear legal definition," said the agency, which also forbids payments to system organizers and prohibits them from working with digital currency trading agencies. "

Indonesian regulators warn:

We need to maintain a level playing field for formal financial institutions. Any financial technology practitioner planning to enter the payment system should apply to the Central Bank of Indonesia to report on its activities and conduct a regulatory sandbox test.


After the central bank commented, local Indonesian media reported:

In Indonesia, the current government ban is on the horizon and bitcoin holders must cash their digital assets as quickly as possible, especially as the current cryptocurrency surge.
In spite of this, Bitcoin is still very popular in Indonesia. According to 2015 statistics, Indonesia's daily bitcoin transaction volume has reached 30,000 to 50,000 US dollars.