All countries are very badly reacting on the bitcoin and cryptocurrency market. This is not a very a unique reaction. Every time when the new revolutionary changes have occurred in the past the world communities have reacted similarly. They accept the thing but slowly –slowly.
Indonesia not accepting cryptocurrency as a payment
Its getting very hard for the countries all over the world to accept the cryptocurrency as a payment . Indonesia too warned its citizens not to trade, hold, create cryptocurrency in any way , as it is very volatile , risky and doesn’t have the government support.
On 14th of January 2018 the central bank of Indonesia released a press conference stating that cryptocurrency is not a legal tender hence it’s not a legitimate instrument for payment. Indonesia not accepting cryptocurrency as a payment these days.
What the law say’s on Indonesia not accepting cryptocurrency as a payment
As per currency Act, 2011 the cryptocurrency doesn’t qualify the definition of instrument as stated in the law. As per Act “any financial transactions conducted within the territory of the Republic of Indonesia has to be fulfilled by the Rupiah”.
Since all the virtual currency is a coin in itself and not the Rupiah . Hence the payment made through any cryptocurrency is not acceptable, as it is not legal .
Press release of the Central bank of Indonesia on not accepting cryptocurrency as a payment
“Bank Indonesia affirms that it forbids all payment system operator (principal, switching operator, clearing operator, final settlement operator, issuer, acquirer, payment gateway operator, electronic wallet operator, money transfer operator). and financial technology operators in Indonesia, both bank and non-bank institution, to process transactions using virtual currency, as stated in Bank Indonesia Regulation No. 18/40/PBI/2016 on Implementation of Payment Transaction Processing and Bank Indonesia Regulation No. 19/12/PBI/2017 on Implementation of Financial Technology.”
Impact on Cryptocurrency market of Indonesia and the rest of the world
Indonesia made its entry in the queue of such countries who are very much interested in controlling rather than benefiting from and accepting the new technology.
Unlike India , UK and Russia Indonesia too shows its policy towards cryptocurrency , and its stand in the near future. People will do as per their own thoughts and wisdom, whatever the government do to stop. They are doing this since evolving of mankind.
The biggest example is Galileo, the inventor of telescope. Had the Galileo got afraid of the church , the telescope would have never ever been invented. All the countries are trying to regulate the things of the market. News of Indonesia not accepting cryptocurrency as a payment is quiet shocking . It will oviously hurt the sentiment of the bitcoin market.
Impact on cryptocurrency traders
Indonesia’s warning and partial ban of cryptocurrency doesn’t going to stop the lover of the blockchain technology to stop it from trading or holding. Though it scared a bit to the new entrants in the market of cryptocurrency. Many things are illegal since long time. Do people stopped doing those activities? No. It would have better if the government supports the cryptocurrency, unfortunately it’s not.
Sooner or later people and the conservative government will accept the new technology, either wholly or partially or a bit modified .