BI: Number of Bitcoin Users in Indonesia Drops, Remains 300 Thousand

Bank Indonesia (BI) claims the number of Bitcoin users in Indonesia continues to decline sharply. Director of BI Payment Policy and Monitoring Department (DKSP) Ida Nuryanti noted the number of virtual currency users has dropped from one million people to 300 thousand only.

"Since the ban from BI, the number (Bitcoin users) has dropped dramatically," said Ida Nuryanti in Semarang, Central Java, on Thursday (5/4/2018) as quoted by Antara.

Ida stated this after the discussion event entitled "Skimming Card-Based Payment Instrument (APMK) and Virtual Currency" at the Central Java BI Representative Office, in Semarang.

He is optimistic the number of active Bitcoin users in Indonesia will continue to decrease along with the decline in the value of virtual currency.

"Bitcoin's price drops dramatically from the position of Rp251 million / Bitcoin, in these weeks it's only about Rp 120 million / one Bitcoin, and we do not think it can rise again," Ida said.

He also explained that BI's decision to ban Bitcoin as a means of payment in Indonesia is based on observations on the low quality of transparency in the transaction of virtual currency.

"We see the transactions as they are, as the transactions are not transparent, there is no recipient name so it can not be tracked, and there is no aspect of consumer protection," Ida said.

He acknowledged BI has not found a case of transactions using Bitcoin that harm consumers in Indonesia. But, Ida rate, if there is a fraudulent transaction in the use of Bitcoin, there is no clarity of procedures for consumers must hold accountable to whom.

"We do coordination and prevention We prohibit that Bitcoin is not a means of payment and strictly prohibits all payment system providers to process transactions with virtual currency," he said.

Head of BI Communication Department, Agusman added BI has issued an appeal to the public about the risks of using virtual currency, including Bitcoin, in 2014. BI then reiterated it by banning its use as a means of payment, by 2018.

"We see in some ways, [Bitcoin] is not underline in concept, can make bubble [bubble], no one is watching, and so on We want people to know the big risks," he said.

According to Agusman, socialization to the community about the development of digital economy, both progress and risks, still need to be improved.

"BI wants the digital economy to move forward, including, [handling] the risks," he said.

BI banned the use of virtual currency, including Bitcoin, as a means of payment in Indonesia in early January 2018. At that time, BI also warned that all parties do not sell, buy or trade virtual currency.