The Central Bank of Indonesia is investigating the use of bitcoin in Bali

The Central Bank of Indonesia is investigating the use of bitcoin in Bali

The Indonesian authorities, including the Central Bank, are experimenting with the use of bitcoin as currency in the various outlets in the tourist island of Bali.

In October 2017 the country’s Central Bank, Bank Indonesia issued an official notification in which it declared illegal the use of bitcoin as means of payment. At that time the Chairman of the Central Bank agus Martowardojo has warned users of bitcoin that the government “will take action against those who use bitcoin”, ignoring the orders of the Central Bank.

Despite the warning, many companies in Bali, the popular tourist island of Indonesia, continue to accept bitcoins. After studying the activity on social networks the head office of Bank Indonesia (BI) Bali Cowes Iman Karana said about the interaction of employees of the Central Bank and the police, working undercover to investigate companies taking bitcoin by the end of 2017.

According to the newspaper The Jakarta Post, the team found that 44 companies, including car rental, hotels, jewelry stores and travel agencies who took the world’s first cryptocurrency.

Karan in a media interview, said: “From social media posts, we discovered that Bali had become a haven for bitcoin transactions.”

He also added:

“The next step should be a ban of cryptocurrency in accordance with the requirements of the legislation. We ask a company not to use them. Together with the division of Department of investigation of special crimes we introduce a provision for mandatory use of rupees [currency of country] for deals in Indonesia”.

Such harsh measures are aimed at users of bitcoin in Bali island, which is the main tourist center of Indonesia with a large Diaspora, which uses the cryptocurrency more for everyone else.

At the moment the country has banned the use of bitcoin as means of payment. But the government of Indonesia can strengthen its critical attitude and more to adopt the legislation that will introduce a complete ban on all activities associated with cryptocurrencies (trades and transactions) in 2018. This month was published preduprezhdeniye Indonesia about bitcoin, which he called “the bubble”. The citizens for “not to sell, not to buy and not to trade” digital currencies, as they are a threat “to the stability of the financial system.”

News tags
Let's Disqus