THECRYPTO.WATCH – There are already countries that use crypto as a substitute for Fiat money. Discourse Crypto as a payment tool is not yet popular in Indonesia.
Even though some countries have started to do it, why? Here’s the review.
Reasons for Crypto as a Payment Tool Can’t Implement It
If crypto as a payment tool in Indonesia, certain circles will welcome it well. But what about the lower middle class?
There is a special reason why crypto hasn’t become a payment utility in place of Fiat money. Here’s the explanation:
Contrary to the law
In Law no. 7 of 2011 concerning currency, states that Rupiah is the only legal currency in the Republic of Indonesia. And is the only valid payment tool for every payment transaction.
This law precludes the possibility of other currencies to become legal tender in Indonesia.
Crypto also cannot be categorized as electronic money in Indonesia.
According to Bank Indonesia Regulation No. 20/6 / PBI / 2018 on electronic money, electronic money is mentioned as:
- Issued on the basis of the value of money that was deposited in advance to the issuer.
- The value of money is stored electronically on a single media server or chip.
- The value of money managed by the issuer is not a deposit as referred to in the law governing banking.
Due to these requirements, cryptocurrencies cannot enter the electronic money class in Indonesia.
BI also considers crypto risk as Blockchain-based finance, if it is used as a payment tool. Without the power of official authorities and banking in the crypto world, various concerns arise in the minds of policy makers.
Such as the management of rupiah, which is more vulnerable when crypto is playing in the area of payment instruments. Capital Outflow or the flight of assets out of Indonesia that could shake up monetary policy.
Not to mention the risk of financial stability, which will involve the banking system and then the risk of anti-money laundering and terrorism financing violations. The last is the risk of violating consumer protection and personal data.
It is not yet time for Indonesia to implement crypto as a payment tool. Law enforcement and economic stability must be achieved before Indonesia does so.