Indonesia to ban Bitcoin as value of the popular cryptocurrency soars above US$10,000

It might be necessary for owners of Bitcoin in Indonesia to cash in on their digital asset soon in the face of its impending ban by the government, especially as the value of the cryptocurrency has skyrocketed recently.

BI Governor Agus Martowardojo said that, in their bid to protect the rupiah as the legal tender in the country, the central bank will ban Bitcoin and all forms of cryptocurrency sometime in 2018, which includes prohibiting any party from facilitating their transactions.

“We are also preventing the potential for arbitration, unhealthy business practices, and the control of businesses by parties untouchable by laws in Indonesia that could who could damage the structure of industries here,” Agus said, as quoted by Pikiran Rakyat today.

Agus added that cryptocurrencies could potentially be used for money laundering and even funding terrorism.

The value of one Bitcoin soared past US$10,000 today, which shows its remarkable growth considering that it was being traded at under US$1,000 at the start of the year and US$9,000 just a few days ago.

Experts are divided about the future of Bitcoin — some believe that the value of cryptocurrency still has far to soar while others are predicting that it represents a speculative bubble that could burst at any time due to lack of regulations.

That said, Bitcoin remains popular in Indonesia, where it was estimated in 2015 that there are US$30,000 to US$50,000 worth of Bitcoin transactions taking place each day, as reported by TechInAsia.

What exactly is Bitcoin? In essence, it’s a decentralized digital currency system that can be used for online purchases — each transaction being verified by a peer-to-peer system. For a more ELI5 explanation of Bitcoin and why it’s a highly speculative form of investment, watch this video by The Guardian below:

2 thoughts on “Indonesia to ban Bitcoin as value of the popular cryptocurrency soars above US$10,000

  1. how exactly are they going to ban it? maybe by having isp’s block the block chain? didnt work very well with porn, and vpn’s are an easy fix… have google and apple remove the apps from the app store? side load the apk… block the indoensian exchnages? people will just cash out to off shore debit cards…

    this is another time they should follow the Philippines.

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