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- Perry Warjiyo has stated that the usage of cryptocurrencies as a payment method will no longer be accepted in the country.
- Financial institutions have to follow the orders very strictly
- The country will be introducing its own digital currency, Rupiah, very soon
With the crypto-community rejoicing over El Salvador’s formal Bitcoin adoption, mistrust from other countries has resurfaced, with Indonesia being the most recent to express reservations over the same. According to a recent report, Indonesia’s central bank governor, Perry Warjiyo, has stated that the usage of cryptocurrencies as a payment method will no longer be accepted in the country. He stated that under the constitution, Bank Indonesia Law, and Currency Law, cryptocurrency is not a recognized payment instrument. BI has already passed a regulation to all its partner financial institutions, stating that all are debarred from using crypto as a platform for any future transfers. Any of the financial institutions failing to comply with the rules of the Bank of Indonesia will have to suffer severe consequences. As many other countries have installed very strict regulations, as far as crypto is concerned. The number of malpractices that are being followed in the domain of cryptocurrency has raised some serious concerns among well-known banks, across the world.
The increasing amount of profits that are being made in the crypto platform has attracted a huge number of people who have gone crazy, and have considered crypto as more of an asset. Their thirst for profits has overpowered their ability to consider the existing risks in the platform, that could potentially clear out a person’s complete belongings, in no time.
Furthermore, Warjiyo warned financial service providers to avoid taking cryptos from their consumers during the same virtual seminar where he made these claims. The bank executive went on to say that supervisors will be assigned to guarantee that the financial institutions followed the instructions. Warjiyo has put in some very serious interest in looking into the cryptocurrency matter, so as to save the country from severe digital fraudulence.
Even the volatility existing in the crypto market is a matter of serious concern. It’s worth noting that, despite its crypto-skepticism, Indonesia is keen on establishing its own CBDC. The bank recently confirmed that the digital rupiah would be issued. The ultimate goal of Indonesian officials favoring CBDCs is to take control of the currency rather than allowing it to be subjected to market volatility. In fact, according to a recent bank social media post,
The Central Bank Digital Currency-Digital Rupiah plan is now being prepared by Bank Indonesia. However, #SobatRupiah must be aware that in order to be implemented, it must be tailored to economic conditions and the digitalization framework pushed by Bank Indonesia.
The introduction of the digital Rupiah would be a completely voluntary step that could be highly beneficial to the country, both in terms of profits and safety. The first and foremost aim of the central bank is to keep the country’s monetary stability intact. In order to go ahead with their decision, the bank of Indonesia has posed a direct question to the citizens questioning whether they are ready to witness the country’s first own digital currency.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
