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The Bank of Indonesia forbids the using of Cryptocurrencies

Not everybody seems to appreciate the power of cryptocurrencies. In an official Press Release published on 13 January on the  Bank Indonesia’s official website, there is described the negative opinion about using the digital currencies.

About the Press Release

Bank Indonesia warns all parties not to sell, buy, or trade virtual currency” is the main title of the official press release. But, why did they affirmed this now, when especially Bitcoin got recognized in the majority of countries?

Well, Indonesia seems to be more skeptical that other countries. They do not allow the payments be realized in cryptocurrencies and it’s illegal to sell, buy or trade them in this country. They have strict rules in terms of payments and currency on their territory. The Act No. 7/2011 on the Currency claim this: “currency shall be money of which issued by the Republic of Indonesia and every transaction that has the purpose of payment, or other obligations which need to be fulfilled with money, or other financial transactions conducted within the territory of the Republic of Indonesia, has to be fulfilled with Rupiah.”

If you are living in Indonesia and hold some cryptocurrencies you should take care. It is too risky.

Why did they have a negative opinion about using cryptocurrencies?

They cannot control them. The cryptocurrencies’ rates are changing, according to the global market. The Bank of Indonesia doesn’t have the power of being the administrator. They admit that digital currencies can attract financial disorder and terrorism attacks.

Being an official bank, they want stability and the option to control all the currencies present on their territory. This is the only way to protect the amount of currencies.

What’s next?

It all started with the warning made in September 2017 by the Bank of Indonesia about elimination of Bitcoin cryptocurrency from the national transactions. After that, two Indonesian crypto exchanges, named BitBayar and TokoBitcoin were closed.

Today, more countries start to join the statements said by the Indonesia. The Algeria’s public institutions have begun to take actions against the digital currencies on their territory. Also, Egypt has already declared Bitcoin as illegal.

How many countries will follow the Indonesian measures? Unfortunately, no one knows the answer-yet. Stay tuned!

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