The central bank of Indonesia bans cryptocurrencies as payment tool

According to the laws “Cryptocurrency is not legitimate payment instruments under the Constitution, Bank Indonesia Law, and Currency Law.” Governor Perry Warjiyo said in the virtual seminar on Tuesday, June 15, 2021, that the central bank of Indonesia has banned financial institutions from accommodating cryptocurrency as a means of payment or other financial services tools.

Bank Indonesia Governor Perry Warjiyo

Bank Indonesia governor also explained that to ensure financial institutions conform to this policy, the central bank will mobilize field supervisors.

This is not the first time, on 7 December 2017, Bank Indonesia issued a regulation banning the use of cryptocurrencies including bitcoin as payment tools starting 1 January 2018.

As AZCoin News recently reported, the central bank of Indonesia plans to issue its own digital rupiah: “BI plans in the future to issue a central bank digital currency, digital rupiah…as a legal digital payment instrument in Indonesia,” Perry Warjiyo told a streamed news conference, without providing a timeline.

In Southeast Asia, the State Bank of Vietnam has declared that the issuance, supply and use of bitcoin and other similar cryptocurrencies are illegal as a mean of payment and subject to punishment ranging from 150 million to 200 million Vietnam Dong (about $ 6,500 -> $ 8,700), but the government doesn’t ban bitcoin trading as a virtual goods or assets.

In Malaysia, the neighbors of Indonesia, Bank Negara Malaysia issued a statement on 6 January 2014 that bitcoin is not recognised as a legal tender in Malaysia. The central bank will not regulate bitcoin operations at the moment and users should aware of the risks associated with bitcoin usage.

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