Cryptocurrency As A Means Of Payment Is Illegal In Indonesia

Perry WARJIYO, Governor of the Bank of Indonesia, said that financial institutions operating in the country are prohibited from using cryptocurrency as a means of payment. Warjiyo made the announcement during a virtual seminar on Tuesday.

Due to the volatile nature of cryptoassets, most governments and regulators have raised concerns, with some taking strict measures to protect investors. In April, the Central Bank of the Republic of Turkey (CBRT) also banned crypto payments, stating that they cannot be used to pay for goods and services. In South Korea, the country's central bank governor Lee ju-yeol said the use of cryptocurrency as a means of payment was limited.

Back in 2018, Indonesia's central bank banned cryptocurrency transactions, but later allowed cryptocurrency trading as a commodity. In May, one of the country's tax officials said the government was considering introducing a tax on profits earned from cryptocurrency trading. Meanwhile, the Bank of Indonesia, like many central banks in the world, is exploring the central bank digital currency (CBDC).

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