In a statement on Friday, 13 January, Bank Indonesia affirms that virtual currencies, including Bitcoin, are not recognized as legitimate instrument of payment, therefore not allowed to be used for payment in Indonesia.
Image credit: Vitalij Fleganov (Source: Flickr)
The statement makes it clear: Ownership of virtual currency is highly risky and loaded with speculations, considering there is no authority responsible, no official administrator, no underlying assets to base the virtual currency price, and that the trade value is highly volatile. This means that virtual currencies are vulnerable to bubble risks, and susceptible to be used for money laundering and terrorism financing, therefore can potentially impact financial system stability and cause financial harm to society. All things considered, Bank Indonesia warns all parties not to sell, buy, or trade virtual currency.
As of today, values of cryptocurrencies like Bitcoins or Ripples rise and fall like nothing. So don’t invest in cryptocurrencies. These are baseless and similar to gambling. Not only Bank Indonesia, China and South Korea are banning Exchanges for cryptocurrencies. Till now no European or American Banks accept these currencies and make financial transsactions. It will never happen.