BI bans cryptocurrency use as payment instrument, financial tool

BI bans cryptocurrency use as payment instrument, financial  tool

Governor of the Central Bank (BI) Perry Warjiyo. ANTARA/screenshot- tweeter @bankindonesia/pri

Jakarta (ANTARA) - Indonesia's central bank (BI) has proscribed financial institutions in the country from using cryptocurrency as a payment instrument or financial service tool, BI's Governor Perry Warjiyo stated.

"We bar all financial institutions, especially partners of BI, to not facilitate or use cryptocurrency as a payment instrument or service," Warjiyo noted during a webinar conducted by the State Audit Board (BPK) here on Tuesday.

The governor emphasized that cryptocurrency was not a legal instrument for payment in Indonesia in line with the laws.

"It is not a legal payment instrument in accordance with the Constitution, the law on Bank Indonesia, and the law on currency," he pointed out.

BI will deploy its supervisors to ensure that financial institutions comply with the law.

Indonesia bans the use of cryptocurrencies in transactions, albeit permitting cryptocurrency trading. The instrument was viewed as having no fundamental basis and clear regulation in addition to being prone to speculation.

BI is planning to launch a digital rupiah currency and is evaluating which platform it will use.
  Related news: WB approves US$400-million to facilitate Indonesia's financial reform

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