The Reason Bank Indonesia Forbids Bitcoin As A Trade Transaction

The use of virtual money like Bitcoin began ogled the people of Indonesia. However, the sale and purchase of virtual money is strictly forbidden by Bank Indonesia (BI/Central Bank)..

Year Of The Bitcoin

Quoting the written statement of Bank Indonesia. Virtual currency including Bitcoin is not recognized as a valid payment instrument, so it is prohibited to be used as a means of payment in Indonesia.

Bank Indonesia confirms to prohibit all payment system service providers (principals, switching providers, clearing organizers, electronic wallet organizers, fund transfer providers and others). Provider of Financial Technology in Indonesia both Bank and Non Bank Institution to process payment transactions with virtual currency.

Bitcoin

Based on BI's assessment, the value of virtual currency trading is so volatile that it is vulnerable to risk bubbles (Bubble) and prone to be used 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.

What is the response from CEO of Bitcoin Indonesia? Oscar rate Bitcoin not exactly referred to as a digital currency. He tends to equate the workings of Bitcoin with Visa and MasterCard payment systems that are well known worldwide.

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Oscar stressed that Bitcoin is a protocol, not a form of digital currency. And when a country legalizes Bitcoin as a means of payment, Bitcoin will automatically involve the local currency.

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