BI Bali Investigates Bitcoin Transaction Practices

By : Herry Barus And Aldo Bella Putra | Saturday, January 13 2018 - 22:30 IWST

Bank Indonesia
Bank Indonesia

INDUSTRY.co.id - Denpasar - Bank Indonesia spread special teams with police to investigate transaction practices using virtual currency or "bitcoin" to a number of points in Bali because it is not a valid payment instrument in the country.

"We are conducting data collection in Bali, especially in tourist areas in cooperation with the police For transactions other than the rupiah will be dealt with," said the Head of Representative of Bank Indonesia Province Bali Causa Iman Karana in Denpasar, Saturday (13/1/2017)

According to Causa, as a world tourism area predicted to attract the attention of irresponsible person to carry out the illegal practice in Bali.

The man who is familiarly called CIK it remind people in Bali to not use the currency in the virtual world as a transaction because there is no clarity governing the payment mechanism.

"We remind the public to be careful with transactions using bitcoin because such currencies have no regulating authority, no laws and no clear," he said.

Meanwhile, Executive Director of BI Communication Department, Agusman, said in a written statement that the central bank forbids bitcoin because it is not recognized as a legal means of payment so it is prohibited to be used as a means of payment in Indonesia.

This is in accordance with the provisions of Act No. 7 of 2011 concerning Currency.

In that rule, the currency is money issued by the Unitary State of the Republic of Indonesia and 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 NKRI must use Rupiah.

Agusman further explained that possession of virtual currency is very risky and full of speculation because there is no authority responsible, there is no official administrator, there is no basis underlying the price of the virtual currency and the value of trade is very volatile.

As a result, he continued, vulnerable to the risk of inflation as well as prone to be used as a means of money laundering and financing of terrorism that can affect the stability of the financial system and harm the community.

"Therefore, Bank Indonesia warns all parties not to sell, buy or trade 'virtual currency'," he said.

As payment system authority, Bank Indonesia prohibits all payment system providers (principals, switching providers, clearing organizers, final settlement providers, issuers, 'acquirers', 'payment gateways', electronic purse organizers, fund transfer providers) and technology providers financially in Indonesia both banks and non-bank institutions to process payment transactions with "virtual currency" or bitcoin.

It has been regulated in PBI 18/40 / PBI / 2016 on the Implementation of Payment Transaction Processing and in PBI 19/12 / PBI / 2017 on the Implementation of Financial Technology. (Ant)

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