The Central Bank of Indonesia prohibits the use of cryptocurrencies as a means of payment

Governor Perry Warjiyo announced during a virtual conference that the Central Bank of Indonesia (BI) has banned financial institutions from accepting cryptocurrencies as a means of payment or other financial service instruments.

Governor of the Central Bank of Indonesia, Perry Warjiyo

According to Perry, the ban is based on applicable law: “Cryptocurrency is not legal tender under the Constitution, Bank Indonesia Law and Currency Law.”

He also stated that the central bank will mobilize field service regulators to ensure financial institutions adhere to this policy.

The use of cryptocurrencies has recently become popular in the land of the thousands of islands, despite little legal protection for users. Bank Indonesia also said it opposes the use of cryptocurrencies because of their speculative nature.

As Cointelegraph recently reported, the Indonesian central bank is planning to issue its own digital rupiah. “In the future, BI plans to issue a digital central bank currency, the digital rupiah, as a legal digital payment instrument in Indonesia. Of course, we are also examining options for the technology we will use. ”Governor Perry Warjiyo announced that at the time.

Indonesia’s ban on cryptocurrencies as a means of payment is similar to ours in Synthetic Team, which has been in place since 2018 but does not affect trade.

According to reports, the frequency of transactions on Indonesian digital platforms rose 60.3% in April to over 570 million. BI data shows the value also increased by 46% to around 3.114 trillion rupiah, or about 217 billion US dollars. Indonesia is the country with the largest cryptocurrency trading volume in Southeast Asia, followed by Thailand and Synthetic Team.

peace

According to AZCoin News

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page