BI Threatens Hard Sanctions of Bitcoin Transaction Institute
By : Herry Barus And Aldo Bella Putra | Monday, January 15 2018 - 23:00 IWST

Bank Indonesia
INDUSTRY.co.id - Jakarta - Bank Indonesia threatens to impose harsh sanctions on payment system providers (PJSP) including banks that serve transactions using Bitcoin and other digital currencies.
"We affirm we will call and we are sanctioning hard There are four regulations in Indonesia that prohibit digital currency," said Executive Director of Policy and Supervision of BI Payment System Eni V. Panggabean in Jakarta, Monday (15/1/2018)
The payment system authority attitude emerged after the transaction of digital currency (cryptocurrency) growing in Indonesia, such as Bitcoin value which has jumped 164 times to Rp214, 4 million since April 2013 until January 2018.
The Central Bank also reminded the transaction and Bitcoin could not be cashed through the payment system service company.
Eni claims the ban on Bitcoin transactions and other digital currencies issued since 2014 is effective.
Until now, according to him, BI has not found a payment system company that serves the transaction of digital currency.
But with the rapid development of digital currencies around the world, Eni said people need to be more careful and not tempted by the lure of digital currency value.
"The characteristic of digital currency is no regulator, pseudonymous, its user name is also disguised so it is vulnerable to be used as a crime, besides there is no central authority regulating," he said as quoted by Antara.
Digital currency with the largest market share is Bitcoin with a contribution of 33 percent or if it is capitalized at 246 billion US dollars. In total, according to Coinmarketcap, there are 1,400 digital currencies currently in the world, with the largest being Bitcoin and Etherum.
Digital currency transactions with excessive demand value can create a bubble that is harmful to financial system stability.
In addition to being harmful to stability, digital currency transactions are also harmful to consumer protection, the stability of the payment system and prone to use as a mode of crime such as terrorism and money laundering.
Head of BI Transformation Program Center Onny Widjanarko said BI will coordinate with the Financial Services Authority, Bappebti and other agencies to issue a common attitude regarding the use of digital currency in Indonesia.
The use of digital currency in Indonesia is contained in three concepts, namely payment system, wallet or wallet, exchange and mining.
BI regulates in the payment system, preventing the impact of its use on the stability of the financial system as well as consumer protection.
"BI in the payment system we are continuing to coordinate with related agencies, such as OJK, to trade with Bappebti. Whether there is a sanction if the digital currency is used as a commodity, it is not in BI, but we are coordinating Maybe in BI in the commodity sector there is no authority but cautioned that it should not be traded because of the risks it had for the stability of the financial system and society," said Onny.
Read Also
Increase in New Loan Disbursement Drives Growth in KB Bukopin's Interest…
PermataBank Holds Annual General Meeting of Shareholders 2023 and…
The Importance Of Cashflow Considerations In The Supply Chain
Fully Supported by KB Financial Group- South Korea, Bank Bukopin…
Index Launch: Remittances Play a Powerful Role in Consumers’ Financial…
Today's Industry

Sabtu, 23 September 2023 - 11:33 WIB
Growing Above Industrial Average, CLEO Strives for Innovation
Producer of bottled drinking water with the brand "CLEO", PT Sariguna Primatirta Tbk (Tanobel Group) targets its sales in 2023 to grow above the average of the bottled drinking water (AMDK)…

Kamis, 14 September 2023 - 15:15 WIB
INOV Poised to Absorb PET Recycling Market Potential
The prospects of PT Inocycle Technology Group Tbk ("INOV") a public company in the field of recycling plastic (PET) bottle waste into Recycled Polyester Staple Fiber (Re-PSF), looks bright for…

Senin, 11 September 2023 - 09:07 WIB
Indonesian Cuisine, Cultural Performances Enliven Gala Dinner of 43rd ASEAN Summit
President Joko “Jokowi” Widodo and First Lady Iriana Jokowi hosted a gala dinner for leaders of ASEAN member states, partners, and international organizations at Hutan Kota restaurant in…

Senin, 11 September 2023 - 07:45 WIB
ASEAN, UN to Enhance Cooperation in Maintaining Regional Peace
On the margin of the 43rd ASEAN Summit, President Joko “Jokowi” Widodo Thursday (09/07) hosted Secretary-General of the United Nations António Guterres in a bilateral meeting at the Kakatua…

Senin, 11 September 2023 - 06:40 WIB
Indonesia, Japan Agree to Raise Partnership Status to Comprehensive Strategic
Indonesia and Japan have agreed to raise the partnership status of the two countries to strategic comprehensive, President Joko “Jokowi” Widodo has said.
News Comment