The Governor at the Central Bank of Indonesia has been hiring many inspectors to make sure that financial institutions and other companies are not involved in cryptocurrency trading that has been banned across the country.
Governor Perry Warjiyo has been in full motion against the trading of cryptocurrency and has been sending out many inspectors and supervisor in the market as a means to ensure that no company or business is operating by using crypto as a payment method. During a seminar hosted on the 15 of June, Governor Perry repeatedly said that any local finance-based companies and payment dealers are not allowed to use cryptocurrency as a payment method for any type of transactions possible.
Governor Perry insisted that cryptocurrency is not a viable payment method under Laws that include the Constitution of Indonesia, Law of the Bank of Indonesia and the Indonesian currency Laws, moving forward with sending out special teams to keep the market in check so that it is operating under the policies issued by the government.
Crypto Ban History of Indonesia
The Bank of Indonesia has been banning companies and institutions from using cryptocurrency since back at the end of 2017. The bank has also stopped payment processing systems from approving cryptocurrency as a means for settling payments. The Bank has also been warning traders and institutions from using any type of virtual currency, but this contradicts with the event when the Indonesian Commodity Futures Trading Regulation Agency spread out some regulations that would allow cryptocurrencies to be used as speculative commodities and give cryptocurrency a chance to become tradable on the stock exchange networks.
The Central Bank and CBDC’s
The governor’s warnings came after the announcement made by the Bank of Indonesia about the progress of building a CBDC on the 25th of May. Bank Indonesia also studied the market and found out that the usage of digital payment methods had swelled up to a massive 60%. On the 30th of May, the central bank gave details about the CBDC, mentioning that the CBDC is respectful of the policies of the government and comes in line with the country’s push into digitalization and other advancements. Information provided by the Bank of International Settlements shows that the central banks that have plans to introduce CBDCs will hopefully finish creating CBDCs in the next couple of years.