Bitcoin is not lawfully accepted payment instrument in Indonesia: BI

Bitcoin is not lawfully accepted payment instrument in Indonesia: BI

Illustration - Cryptocurrency Bitcoin (Shutterstock).

Since the start, we have warned and stressed that Bitcoin is not allowed to be used as a means of payment and so is the case with other currencies other than the rupiah.
Jakarta (ANTARA) - Central bank (BI) Governor Perry Warjiyo emphasized that the use of cryptocurrency, such as Bitcoin, as a means of payment is prohibited in Indonesia since it ran counter to the law.

Warjiyo made the statement in connection with the increasing trend of Bitcoin price to its highest level at Rp741 million on February 18.

"Since the start, we have warned and stressed that Bitcoin is not allowed to be used as a means of payment and so is the case with other currencies other than the rupiah," the BI governor noted during a forum of the CNBC Economic Outlook here on Thursday.

The country's Constitution has authorized the rupiah as the sole means of payment in Indonesia. Therefore, all forms of currency used in Indonesia -- coins, banknotes, digital money -- must be in rupiah.

Warjiyo spoke of the BI having preparing a digital currency known as the central bank digital currency that is scheduled for launch in the near term.

BI will consistently work in close collaboration with other countries' central banks to prepare the digital currency.

"We will distribute it to banks and fintech in wholesale as well as retail," Warjiyo revealed.

Bank Indonesia had announced Bitcoin to be an illegal payment and transaction instrument, but the Trade Ministry's Futures Exchange Supervisory Board (Bappebti) is considering it as an investment instrument. Related news: Bitcoin possesses potential to fund terrorism: BI
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