Bitcoin was born from Blockchain technology.
Representative Office of Bank Indonesia of West Sumatra tightened supervision to prevent any transactions using virtual currency. So the use of Bitcoin and the like is not more prevalent in Indonesia.
"Virtual currency including Bitcon is prohibited to be used as a means of payment in Indonesia," said Head of West Sumatra Regional Office of Representative, Endy Dwi Tjahjono, Tuesday, March 6, 2018.
In addition to further supervision Endy, it also appealed to the public not to use virtual currency as a means of payment or investment tool. Because it is very risky and full of speculation because there is no authority responsible for it.
In fact, there is also no official administrator and there is no underlying asset underlying the price of virtual currency and the trade value is very volatile. Thus, its use is highly vulnerable to the risk of inflation and is prone to use as a means of money laundering and terrorism financing.
"In the future we will conduct many surveys to the field to see if there are any transactions using this virtual currency, if there is, we will act firmly according to the sanctions," Endy added.
Endy explained that the non-recognition of virtual currency including Bitcoin as a valid payment instrument, is in accordance with the provisions of Act No. 7 of 2011 concerning Currency.
"Bank Indonesia as an authority in the monetary sector, financial system stability and payment system has always been committed to maintaining financial system stability, consumer protection and preventing money laundering and terrorism financing practices," he said.