First reported by CCN in early 2014, the country’s central bank issued a public notice warning citizens to be careful of adopting virtual currencies. “Bank Indonesia states that Bitcoin and other virtual currency are not valid currency or payment instruments in Indonesia,” read an excerpt of BI’s statement at the time.
Bank Indonesia (BI) governor Agus Martowardojo has reaffirmed the monetary authority’s stance that bitcoin is not a legal method of payment in the country.
Speaking in Indonesia’s capital of Jakarta last week, the central bank governor reportedly said: “I must emphasize that BI does not see bitcoin as an official payment tool in Indonesia so all people should know not to use Bitcoin as a means of payment. There is a risk.”
The central banker stressed that any new financial innovation must get Bank Indonesia’s approval – dependent on a number of requirements – before it is used or adopted as a payment method in the country. Further, the official doubled down with threat to those defy the central bank’s order.
The head of Bank Indonesia, Indonesia’s central bank, has threatened action against bitcoin adopters if the cryptocurrency is used as a method of payment.