Indonesia Wants to Ban the Use of Crypto? - - Financial Market Media No. 1 in the World Indonesia Wants to Ban the Use of Crypto? Indonesia Wants to Ban the Use of Crypto?

June 17, 2021

Indonesia Wants to Ban the Use of Crypto?

 Of late we have witnessed significant developments in the crypto industry, where crypto is beginning to gain recognition among countries. Even so, not all parties like and agree with the action taken.

Most recently, Indonesian authorities decided that they did not want to have anything to do with the emerging new asset class.

Based on the latest report, Indonesia's central bank governor Perry Warjiyo stressed that the use of crypto as a payment method in the country will no longer be allowed. Warjiyo made the statement in one of the seminars held on Tuesday warning all financial services to stop accepting crypto as a means of payment from their customers.

He stressed that the ban on the use of crypto as a transaction tool was not a new thing. It has been enshrined in existing law.

Warijaya argues that crypto is not a legitimate payment instrument based on Bank Indonesia law and currency law. Therefore, to address this issue, Bank Indonesia will assign officers to inspect and monitor the activities of financial institutions.

It can be concluded that Bank Indonesia is not comfortable to allow the use of crypto due to the high nature of ‘volatility’, but has shown interest in issuing central bank cryptocurrency (CBDC).

The issuance of the CBDC will allow the central bank to have control over the market and be able to outline clear rules.