Success Stories

Indonesia is thinking its own cryptocurrency issuance
Editorial Team

Former Minister of Finance of Indonesia examines the possibility of the country issuing its own cryptocurrency. According to the popular Indonesia newspaper “Kompas”, the Former Finance Minister, Mr. Chatib said at the Digital Disruptive Event taking place at the Ritz Carlton in Jakarta that given the impossibility of an effective banning in circulation and use of Bitcoin and altcoins in the country, maybe the effective alternative could be the use of its technology to create a cryptocurrency backed and issued by the Central Bank of Indonesia.

“In the future, I think the central bank should get in here (digital money) because otherwise, it would be complicated,” said the former finance minister.

Previously, the Chief of the Bank of Indonesia’s Payment System Policy Department Mr. Onny Widjanarko stated that they are studying the possible use of digital or virtual rupiah.

Just as an example the UK central bank, conducted a study of the digital currency since 2016 ago.

“The purpose of this study is whether the central bank issued digital currency, 70 percent of the central bank conducted the study,” said Onny in the Office Complex BI, Wednesday 31 January 2017.

Nevertheless, even though until this date no Central Bank has issued any digital or cryptocurrency, many initiatives have been presented to integrate the world of financial control of Central Banks with the advantages of Blockchain technologies. Counties such as Canada, Israel, Singapore, and Ecuador have already declared their intention of launching initiatives using cryptos. Other countries like Venezuela and Russia have proposed the use of cryptocurrencies with even more ambitious motives, such as the elimination of banking control over their accounts. As a result, they avoid sanctions with counties which freeze their FIAT accounts and availability of their funds.

According to Mr. Chabit, the initiatives to ban the use of cryptocurrencies are just waste of time or they are at least in the wrong direction. Due to their underlying technology, it is practically impossible to gain control lover Bitcoin flow that circulates in your network.

“So, it’s better for him (BI) to create something that can be monitored. I appreciate BI’s move. I am aware of BI’s concerns about Bitcoin. Bitcoin is the source of the bubble (price bubble), (…), but cannot be banned,” said Mr. Chatib.