Digital Currency is Prohibited as a Payment Tool

By : Herry Barus And Aldo Bella Putra | Saturday, January 13 2018 - 22:00 IWST

Bank Indonesia
Bank Indonesia

INDUSTRY.co.id - Jakarta - Bank Indonesia warns that virtual currency including bitcoin is prohibited to be used as a means of payment in Indonesia.

Executive Director of Communication Department of BI Agusman in Jakarta, Saturday (13/1/2017) explained it in accordance with the provisions in Law no. 7 of 2011 concerning Currencies stating any transactions that have a purpose of payment, or other obligations that must be met with money, or other financial transactions conducted in the Territory of the Republic of Indonesia must use the Rupiah.

"The ownership of 'virtual currency' is very risky and full of speculation because there is no seniority responsible," he said.

In addition, said Agusman, digital currency transactions are also no official administrators, do not have "underlying asset" or reference underlying the price of digital currency and has a very volatile trading value.

Therefore, digital currency payments are highly vulnerable to bubble risks, and are prone to use as a means of money laundering and financing of terrorism.

"So that it can affect the stability of the financial system and harm the public, therefore, Bank Indonesia warns all parties not to sell, buy or trade digital currency," he said.

The Central Bank as payment system authority also prohibits all payment system service providers namely principals, switching organizers, clearing organizers, final settlement providers, issuers, acquirers, payment gateways, electronic wallet organizers, fund transfer providers, and financial technology providers in Indonesia both Bank and Non-Bank Institution to process payment transactions in digital currency, as regulated in PBI 18/40 / PBI / 2016 concerning the Implementation of Payment Transaction Processing and in PBI 19/12 / PBI / 2017 on the Implementation of Financial Technology.

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