Bank Indonesia, in a release submitted by the Executive Director of the Department of Communications, Agusman, confirmed that virtual currency including bitcoin not recognized as a valid payment instrument,
so it is prohibited to be used as a means of payment in Indonesia.
Furthermore, Agusman said that it is in accordance with the provisions of Act No. 7 of 2011 concerning Currency which states that the currency is money issued by the Unitary State of the Republic of Indonesia.
“Any transaction that has a purpose of payment, or other obligations that must be fulfilled with money, or other financial transactions conducted in the Territory of the Republic of Indonesia must use the Rupiah,” said Agusman in the release.
Ownership of virtual currency, according to the BI Communication Department, is very risky and full of speculation because there is no responsible authority, there is no official administrator, there is no underlying asset underlying the virtual currency price.
In the release, BI also said that the value of virtual currency trading is so volatile that it is vulnerable to bubble risks and prone to be used as a means of money laundering and financing of terrorism.
“It can affect the stability of the financial system and harm the public. Therefore, Bank Indonesia warned all parties not to sell, buy or trade virtual currency, “said Agusman in the release.
Bank Indonesia, the Executive Director of the BI Communication Department, prohibits all payment system providers (principals, switching providers, clearing organizers, final settlement providers, publishers, acquirers, payment gateways, electronic wallet providers, fund transfer providers) and financial technology providers in Indonesia both Banks and Non-Bank Institutions to process payment transactions with virtual currency, as 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.
“Bank Indonesia as an authority in the Monetary, Financial System Stability and Payment System has always been committed to maintaining financial system stability, consumer protection and preventing money laundering and terrorism financing practices,” said Agusman at the end of the release.
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