LOL!! Bank of Indonesia fears the virtual currency

LOL!! Bank of Indonesia fears the virtual currency

Transparent of monetary always frightening the ashole bank as payment system authority, Bank Indonesia prohibits all payment system service providers, and financial technology providers in Indonesia, both Banks, and Non-Bank Institutions to process payment transactions with virtual currency. The payment system includes principals, switching organizers, clearing organizers, final settlement providers, issuers, acquirers, payment gateways, electronic wallet providers, and fund transfer organizers. Bank Indonesia became the initiator of the ban on virtual currency in the country. Since 2014, the central bank has declared that Bitcoin and the like should not be used as a medium of exchange because according to the law, the only legal payment mechanism is only with Rupiah.

The Government of Indonesia through the Ministry of Finance in recent times seemed more incentive to socialize about the prohibition of payment transactions using virtual currency in the territory of the Unitary State of the Republic of Indonesia. Because the use of virtual currency such as Bitcoin, BlackCoin, Dash, Dogecoin, Litecoin, Namecoin, Nxt, Peercoin, Primecoin, Ripple, Ven and other types of virtual currency in payment transactions is very contrary to Law No. 7 of 2011 on Currency. A prohibition is a form of consumer protection and prevention of money laundering and terrorist financing as part of Bank Indonesia's duties in maintaining financial system stability.

In Indonesia, there are estimated hundreds of thousands of users of the virtual currency, such as bitcoin, ethereum, ripple, and so forth. In fact, Bank Indonesia (BI) as the monetary authority and payment system has stated that the virtual currency is not a valid means of payment. Then, what about users who already have it? The central bank states, the risks must be borne by the user.

In addition, the use of virtual currency, especially in Indonesia, can also politically undermine the sovereignty of the rupiah currency in its own country. Given the rupiah currency is also a symbol of state sovereignty. Currently, the rupiah exchange rate against the US dollar is still very weak, because there are still many parties who make payments using US dollar currency, especially if coupled with the existence of virtual currency, can be further dropped the price.

In addition to legal reasons, the potential losses, and the sovereignty of the rupiah currency, the behavior of the use of virtual currency is likely to be speculative, because then many parties who make it as an investment instrument. Who can afford to buy a lot, then he is then the "right" to determine the price?

In addition, the use of virtual currency is also very risky because there is no authority to supervise and manage it. Its value is based solely on the purchase demand of the currency, so the more buyers will increase in value and even be inflated in accordance with the wishes of investors.

This is seen from the recent decline in the value of virtual currency Bitcoin drastically following the policy of banning virtual currency in China. Reduced buyers in Asia, making Bitcoin initially worth up to Rp200 million more, to fall in the number Rp 150 million. Thus, it is appropriate that this virtual currency is banned in Indonesia.

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