Soon Bitcoin will be 'attacked' by the World Central Bank

Photo: Infographic / Here Are 5 Reasons Why People Are Crazy About The Same

Jakarta, CNBC Indonesia - The skyrocketing price of bitcoin has increasingly brought it to the attention of central banks in various countries. During this year alone, bitcoin has shot more than 100%, and set an all-time high of US $ 64,899.97 / BCT on Wednesday (4/14/2021).
When viewed since early 2020, bitcoin has skyrocketed by more than 700%. Not only bitcoin, other cryptocurrencies also fly even higher. But bitcoin is in the most spotlight, because it is the trigger for the rise of other cryptocurrencies, has the largest market capitalization, and its wider acceptance, from institutional investors, to giant companies starting to invest in bitcoin.

As bitcoin's increasing popularity followed by an increase in its price, central banks in various countries began to warn. In fact, the real warning was given years ago, but bitcoin is gaining popularity.

When the warnings didn't work, the central bank took tough steps. This week the Turkish Central Bank issued a ban on use such as Bitcoin CS to purchase goods and services. This policy will take effect on April 30, 2021. The reason for the ban on crypto assets is because the Turkish Central Bank finds significant risks for transacting parties.

When this rule is implemented, financial institutions will not be able to facilitate platforms that offer trading of crypto assets, custody, transfers and issuance of cryptocurrencies .
Meanwhile, executives at the World Economic Forum (WEF) warned of a "dramatic" set of regulations for cryptocurrencies.

"We are going to see a series of dramatic efforts to regulate cryptocurrencies," said Sheila Warren, member of the executive committee who is also head of data, blockchain and digital assets of the WEF, as quoted by Forbes, Thursday (15/4/2021).

"As there is more activity in cryptocurrencies, there is more and more demand for regulators to get involved in it," he added.

Previously there was the central bank of the United States (US) or The Fed which again gave a warning this week. The Fed chairman, Jerome Powell, said bitcoin CS was a "speculative vehicle".

"Cryptocurrency is a vehicle for speculation. It is not actively used as a means of payment," said Powell at the event The Economic Club of New York, as reported by CNBC International , Wednesday (14/4/2021).

Powell also compares bitcoin to gold which is said to have value, while cryptocurrencies do not.

"For thousands of years, humans have given a special value to gold that cryptocurrencies do not have," he added.

Bank Indonesia (BI) also provides a warning to the public in using cryptocurrency . This digital currency cannot be used as an official means of payment because only rupiah is recognized as the only official means of payment in Indonesia. BI investors also ask to be careful.

"As a payment system authority, we still prohibit the use of cryptocurrency as payment. But for investment, not with us (supervision). We have warned about the risks, because there is no underlying asset ," Head of the BI Communication Department Erwin Haryono.