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BI and cryptocurrencies: A love-hate story
BI seems to be distancing itself from the use of cryptocurrencies. People might then question: Why has BI taken such a stance?
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BI seems to be distancing itself from the use of cryptocurrencies. People might then question: Why has BI taken such a stance? (Shutterstock/File)
B
ank Indonesia (BI) has hinted at the possible implementation of a new regulation on electronic money (e-money) to be put in place starting in 2018. In a highly anticipated response, the central bank has also signaled the prohibition of transactions using cryptocurrencies, like Bitcoin, starting next year.
At the moment, while a specific regulation has not yet been introduced, BI seems to be distancing itself from the use of cryptocurrencies, rejecting the use of this medium of exchange and refraining from any responsibility in cases where users lose their stakes.
People might then question: Why has BI taken such a stance?
Cryptocurrencies have crossed the line between the virtual and real world using a technological platform called the blockchain. This technology is a digital peer-to-peer register that records and stores transactions between parties. Each transaction is communicated to peers instead of a central database.
