Recent reports indicate that Indonesia’s central bank has decided to crack down once again on Bitcoin, stating that it represents neither a legal nor recognized medium of exchange and payment in the country.
Indonesia resumes past position on digital currencies
Back in February 2014, Reuters reported that Indonesia had decided to ban the use of digital currencies. A press statement issued by the country’s central bank at the time read: “Bitcoin and other virtual currencies are neither currency nor legal payment tools in Indonesia. People are advised to be careful about Bitcoin and other virtual currencies”.
Shortly thereafter, the country decided to reconsider its position on digital currencies, and hence turned a blind eye to individual users, bitcoin exchanges, and business services involving digital currency use.
It seems the latest announcement has already led to the closure of Toko Bitcoin and Bitbayer, two Bitcoin payment platforms operating in Indonesia. Bitbayer, an alternative to services like BitPay, has announced it will cease its services as of November 1st. Users are encouraged to withdraw all of their funds before the end of this month. Additionally, Toko Bitcoin, which was popular for allowing customers to purchase electricity vouchers along with phone credits, has decided to stop accepting the digital currency as a means of payment.
While reports indicate that there was no official request made by the central bank towards these two companies, it is important to point out that its governor, Agus Martowardojo, stated that Bitcoin was not a legal method of payment and that if used as such, action would be taken. Not long beforehand, the digital currency could be used as a method of payment as long as prices were denominated in Indonesia’s national currency, the rupiah.
This decision is likely to have a negative impact on numerous fintech businesses and start-ups operating within Indonesia, as most will now have to reconsider their niche or move their operations somewhere else. However, Bitcoin exchanges will continue to operate freely in the region.
Based on these reports, what do you think about the central bank’s latest crackdown on digital currencies in Indonesia? Let us know your thoughts in the comment section.
fuck em
Do they have a tsunami warning system installed yet?
They are yet heavily invested in Enron.
It seems that the worldwide government war against Bitcoin has finally started… Maybe that is why Bitcoin price is falling so hard since it’s all-time high.
Bitcoin price is falling so hard lately ?))
getting to 6K means dropping in current financial institutions?
Unfortunately you wrote this while Bitcoin is up $225 for the day
They just fucked themselves over.
They are a muslim country so meh.
They ban pork, alcohol etc, etc ….
ban now pain later
Indonesia is flip-flopping on what it wants with Bitcoin. The public officials want the money from it but it doesn’t know what to do with it. :/
its falling after releasing a lot of BTC from wallets, due to BTC gold fork…. people wanted to have BTC in their wallets, thats why the price dropped now…
So, so stupid. This will just drive traders underground and OTC as well as localbitcoins will massively grow. Instead of getting a cut of the pie, now it totally can’t be taxed by the Indonesian government. Sucks to be an Indonesian right now.
agreed!
of course. eventually, most of the governments/banks will, and that’s because bitcoin doesn’t answer them and has the potential to decentralize the whole economic system.
seriously guys? to expect indonesia to addopt an digital currency?
even their atm card dont have a visa/master logo at all.
their online payment system suck and totally far behind another crypto accepted country such as japan.
its only this recently a payment solution like midtrans and ezpay came out for small to mid level of online store, mostly only such a company or higher level of online store that implemented online payment on their site, for an individual one, guess what? they are still using such a manual order and payment system like before 2004 since people in here had their eyes opened for world of internet.
need another fun fact?
try to see their online banking site for their most biggest bank in jakarta or their most bigger bank in their whole country.
guess what? their biggest bank in jakarta still using a site that they built since the first time they launch their internet banking, nothing new from then , not even their design , forget about their feature or system it was like no different from 15 years ago.
and the biggest one from their whole country? it never came to my mind to open an account on that bank at all.
as about the competitor for their biggest in jakarta, they could even missed to sent my cc bill for 3 months, and later they send the last one with the warning mail that came together, to make it worst their staff keep calling me when im late in payment, and the most epic thing is, they are more than 1 person, and their information on the total bill can be different, funny? unprofesional? u name it!
so, are you guys really think that indonesia is ready for a digital currency when their citizen are not even able to get their electronic chip id card after years of their launching, or their gov staff still have alot of them that typing on keyboard with eleven fingers( you know what i mean) , and so so many
other things that been left this country behind, they tax system are even just started, until years ago most individual business owner never pay their tax, how can we expect them to use a digital currency that were giving such a headache for united states and many other country due to their “unmonitored” issue, when you cant even monitor your own tax payer.
it will only getting more profit to the bad side than the good side in my humble point of view, so i believe the gov was right to ban it till their citizen and country are ready to use them.