Bank Indonesia Bans Cryptocurrency as Payment Method

Bank Indonesia Bans Cryptocurrency as Payment Method
  • Bank Indonesia bans cryptocurrency as a  payment method.
  • Cryptocurrency not a legal instrument for payment in Indonesia.
  • The whole cryptocurrency industry is facing many regulatory issues.

The governor of the Indonesian Central Bank, Perry Warjiyo declared in the virtual seminar about the ban of cryptocurrency as a payment method or any other financial service tool.

Moreover, Perry Warjiyo stated, 

“We bar all financial institutions, especially partners of BI, to not facilitate or use cryptocurrency as a payment instrument or service”

This happened in a webinar organized by the State Audit Board (BPK) on Tuesday.

The Governor noted that the prohibition placed on using digital currencies to make any kind of payment. This is not an entirely new concept, it is already in existing laws.

Furthermore, the Bank Indonesia governor highlighted that cryptocurrency not a legal instrument for payment in Indonesia. The central bank will assemble teams to make sure that institutions comply with the ban.

Accordingly, Bank Indonesia is not convenient with allowing the use of cryptocurrencies because of extreme volatility rates and very little regulation. It is more interested in creating its Central bank Digital Currency (CBDC), which is speeding up digital payments. Furthermore, Indonesia now joins with Canada, China, France, Japan, and several other nations to modernize financial systems

Henceforth, the Bank Indonesia reported that it will be issuing its virtual rupiah to help. Moreover, creating its digital currency will make the central bank have total control over its performance and create clear rules and regulations for it.

Beyond this new announcement by Bank Indonesia, the whole cryptocurrency industry is facing many regulatory issues from financial regulators worldwide.

Even though, in many countries like Nigeria cryptocurrency trading is banned. And the latest regulatory heat coming from China.

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