Indonesia: BI Reminds Again that Virtual Currencies, Bitcoins are Banned

• Feb 22, 2018

TEMPO.CO, Jakarta – Bank Indonesia (BI) once again released a public announcement regarding virtual currencies such as Bitcoin that are not considered to be a legitimate payment tool in Indonesia.

In accordance with Law, No 7/2011 on currencies state that legitimate currencies are the ones that are issued by the country and that every transaction must use Rupiah as its currency.

“This makes it clear that virtual currencies are not included in the rupiah currency definition. That is why Bank Indonesia banned its use in Indonesia,” said Bambang Pramasudi, Head of Bank Indonesia’s branch office in Maluku Province on Tuesday, February 20.

Bambang reasoned that virtual currencies are saturated by risks, speculations, and fluctuates easily because of the lack of any official administrator that is responsible for controlling the value of the currency.

He also argued that virtual currencies are prone to be used for money laundering and source funds for terrorist activities.

Bambang once again reminds that Bank Indonesia has banned the use of virtual currencies such as Bitcoin by Indonesian payment system providers and financial technology organizers.

Source: https://en.tempo.co/read/news/2018/02/22/056915947/BI-Reminds-Again-that-Virtual-Currencies-Bitcoins-are-Banned