Abstract – Payment by using electronic money which is integrated with all providers of both banks and
non-banks will make quite a lot of convenience to the public. Electronic money using this type of chipbased
or server-based still require the role of a third party to resolve the issue of compatibility between
electronic reading terminal (EDC) in order to exchange information related to process debit the customer's
account. The purpose of this study is to do a study on the use of technology cryptocurrency using bitcoin
technology to build integrated electronic money payment system. Qualitative research methods used in
the study, through the analysis of narrative and explanation based on sources gathered from various
media publications. With the construction of an integrated system between providers both banks and nonbanks,
it may be possible for the community and the seller just enough to have one type of payment
instrument that can be used in all places. Cryptocurrency using bitcoin technology allows for the
construction of an integrated system which is able to exchange data in a peer-to-peer is limited among
providers.
Keywords: cryptocurrency, bitcoin, peer-to-peer, EDC, debit
1.a Background
Along with the increasing globalization
the world economy, the needs of society will
speed, ease and security of transactions
finance is increasing. So that
required payment system is quite reliable
and easy for banking customers. System
payment is a mechanism that
includes the settings used for
delivery of payments through exchange
value among individuals, good financial institutions
both domestically and globally. Bank Indonesia
as the authority of the payment system
divide 2 types of payment system instruments
ie cash and non-cash. Payment instruments
cash in the form of paper money as a transaction tool
payment has many limitations
so that it can no longer meet the needs
society today.
Currently the trend of the transaction
use of non-cash payment tools already
become an urgent need for
community. The role of a teller in a bank already
began to be replaced by machines like ATM and
EDC. Bank Indonesia divides 5 types of instruments
non cash payment ie card, check, bilyet giro,
debit notes and electronic money. Of course from
the five types of payment instruments,
electronic money becomes the most choice
needed now. But electronic money
which is currently widely circulated issued by
each issuing agency uses
different infrastructure, according to
characteristics of its customers. This condition
have an impact on the problem
compatibility between electronic money products from
different publishers, so that's enough
confusing the community as a user
end to choose which electronic money products
which she will wear. To this amount
there is a lot of electronic money available
20 companies issuing electronic money with
its diverse products. Bank Indonesia itself
categorize two types of electronic money products
namely chip based and server based. While
the payment system that currently exists, has not
meet the needs of society in general.
Based on a journal written by Joey
Conway entitled Beginners Guide to
Cryptocurrencies, in the range of 1982
(Conway, 2014), David Chaum of the University of
California first published
about the idea of making a method
cryptographic based payment with
its product is called DigiCash which can be
keeping the owner's data confidential (Chaum,
1982). Cryptocurrency appears as an answer
over the constraints facing the payment system
currently highly dependent on the parties
third as a product publishing company
payment that is trusted to do
management of digital transactions such as visas,
mastercard, paypal, etc. Cryptocurrency is
the name given to a system that is
using cryptography to do the process
sending data safely and to
doing the digital token exchange process
spread (Dourado & Brito, 2014).
With the use of technology
cryptocurrency as system technology
the payment still has some
constraints associated with the problem enough
long faced and unsolved for
many years in the world of computer science
namely Double spending problem and Byzantine
general problem (Dourado & Brito, 2014).
So this technology has never again
discussed. Until finally at
in 2008 there was a programmer
claimed to be named Satoshi Nakamoto
(a pseudonym) creates a currency
new digital named bitcoin. With
the emergence of Bitcoin is apparently able to answer
problems related to the above problem, bitcoin
appear as currency and also as
a data exchange communication protocol
using cryptography technology.
There is now considerable research
examine various aspects related to
the development of this bitcoin protocol. Starting from
refinement of bitcoin protocols as well
create its own cryptocurrency protocol with
carrying the concept of bitcoin. Terminology
bitcoin itself is still a lot wrong
interpreted, bitcoin itself has 2 sense
and views. The first bitcoin works
as an independent currency and not
has a regulatory body. The second bitcoin
as a technology, system, and
a protocol.
Society needs deep freedom
doing financial transactions concerning
payment without being confronted with obstacles
the payment system of each issuer
different. Of course hope
society no longer need to mess with
compatibility issues from money publishers
different electronics. And besides that
utilization of bitcoin technology is expected
can help solve that problem
currently faced by the relevant Indonesian banks
with standard electronic money making.
With this standard electronic money making
is that every publisher can be mutually exclusive
connect with each other by using
the same standard and of course with
attention to aspects of ease, security,
and speed. So people do not have to
worried about going to transaction
financially related to different types of money
electronics with EDC devices (electronic data
capture) owned by the seller.
The problem faced is how
using cryptocurrency technology
bitcoin can be utilized for the system
payment in Indonesia. While the goal
research is exposing the benefits of
use of bitcoin technology so it can
used to be a payment system
which is integrated. This research will be useful
Helping the transfer of money
efficiently in the community, so participate
increase public confidence in
rupiah, so indirectly participate
improve the smoothness of the economy
Indonesia, as it is supported by the system
Good payout and Provide exposure
regarding the design of system changes
new payments to the community, so
opening new research opportunities in Indonesia.
2.1. Basic theory
2.a.1 Money
Money in traditional economics is defined
as a medium of acceptable exchange
general, the exchange instrument itself can be anything
as long as it is generally accepted or
community in the process of exchange of goods and
services (Paganelli, 2012). History of
shifting mode of payment in terms of transactions
exchange of goods has been known since the times
first. The beginning of occurrence begins with the system
barter where everybody makes a transaction
exchange goods in order to fulfill
the necessities of his life, after this era ends
emerging a new era by using money
as a tool that uses metal
noble gold and silver. This era
known as the money-based commodity era
(commodity money) where a good
used as a normally-based support
precious metals such as gold and silver.
Meanwhile, according to Ólafsson, Ísak Andri
B in the journal "Is Bitcoin money? An analysis
from the Austrian school of economic thought "
(Ólafsson & B, 2014) Money alone must have
3 main functions are:
- As a medium of exchange
- As a unit of calculation tool
- As a store of value
2.2. Electronic Money
Rupiah is the only currency that
recognized in Indonesia and compulsory for all citizens
Indonesia to use rupiah
in any financial transaction. Currency
rupiah is used for all types of transactions
anything in indonesia that requires tools
payment. However, Bank Indonesia delivers
freedom for business people to
using currencies other than the rupiah
only for purposes
specifically in accordance with the rules
issued by Bank Indonesia. Based on
Bank Indonesia regulation no. 11/12 / PBI / 2009
Electronic money is an instrument
payments that meet the elements
as follows : - Issued on the basis of value for money
paid in advance by
holder to the publisher; - The value of money is stored electronically
in a media such as a server
or chips; - Used as a means of payment
to a non-merchant
is an electronic publisher of money
the - The value of electronic money paid by
holder and managed by the publisher
not a deposit
as referred to in
laws governing
about banking.
Holder is the party to use
electronic money. The value of electronic money is the value
money saved electronically on a
media that can be moved for the sake of interest
payment transactions and / or funds transfers.
Issuer is a Bank or Non-Bank Institution
which issues electronic money.
2.3 Cyrptocurrency
Before the digital era emerged as it is today,
means of payment in the form of physical objects either
gold, silver and currency have been
widely used today. The role of money itself
has 3 functions as a means of payment,
unit unit, store of value (Conway, 2014).
Based on a journal written by Joey Conway
entitled Beginners Guide to
Cryptocurrencies, in the range of 1982, David
Chaum from University of California first
publish on the idea of making
a payment-based method
cryptography that can keep data confidential
the owner. And in 1990, David Chaum
create a company called DigiCash,
with its main product ie making a
payment instruments using smart cards and
electronic cash (ecash). Types of digital payments
(virtual currency) consists of 2 kinds, yang
first virtual currency in the form of money
digital like money used on apps
video games, telkomsel cash, XL cash, Indosat
My wallet, and some digital payments
others. This virtual currency type is
centralized, regulated and managed by a
institutions and companies (Conway, 2014).
The second is the virtual currency
using cryptography or known technology
with cryptocurrency where for
each transaction data will be encoded
using a particular cryptographic algorithm.
For now the only bitcoin is the only one
the first cryptocurrency has been overwhelming
applied and used widely, even
so many now emerging types
Another cryptocurrency of development
protokokol bitcoin.
2.4 Bitcoin Technology
The basic concept of bitcoin is making the system
decentralized authority transaction without existence
third parties who can verify
using the concept of digital signature
on every transaction (Nakamoto, 2008). Coin
electronics is a nominal value
can be in transaksikan, where this digital coin
is a digital signature circuit
which are connected.
For every banking transaction in general,
access to customer information of course
restricted. Whereas when using
bitcoin technology, every transaction can be seen
by everyone who is networked
bitcoin, access to this information is also still be
anonymous because it is not known who
its owner (Nakamoto, 2008)
Figure 2.3 Privacy Graph
Source (Nakamoto, 2008)
2.5. Literature review
Research on payment systems at
Indonesia has been discussed by Bank Indonesia
(Indonesia, 2012), with discussion
about the potential payment system at
Indonesia will get better if
supported by information technology, because
information technology has become the backbone
economic activity. With the presence of technology
information, paka payment process can
done quickly electronically.
Surely this will bring convenience to
society, and the impact of economic turnaround
will be efficient and fast.
In another study conducted by
Bank Indonesia (Untoro, R, & Wahyu, 2014) as well
states that the payment system is good
will bring a very significant impact
for financial system stability.
Many studies are examining
about bitcoin from various aspects. On
this research, the author will try to do the study
regarding the use of bitcoin for use
as the application of the rupiah currency. Research
done by (Brander, 2014) tried
to compare currencies
bitcoin with the union currency ie
USD. The study also raised
on emerging issues
view of many experts about the eyes
bitcoin money in currencies other than USD and
its impact on an economy
country.
The study of the era
digital payments are quite a lot
used by many countries such as systems
many international payments
used by people like Visa,
MasterCard, Paypal, American Express, JCB,
Western Union discussed by (Evans, 2014).
In the study discussed
payment system that has been used
nature is centralized or managed by parties
third to perform data management functions
customer which means it will all be
depends on the provider. With
the emergence of bitcoin technology into a new era
the first digital payment transaction
possible a payment transaction
can be done independently by parties
third (decentralization). This is possible
because bitcoin uses network technology
peer-to-peer in managing each transaction
that happened.
3.1. Analysis Results
In Indonesia the payment system is quite diverse,
the type of payment tool can be grouped
into 2 main categories of payment instruments
manuals and electronic money
- Conclusions
As a system of financial transactions
new, cryptocurrency by using
bitcoin is a relatively new technology and
need further assessment. There are still many aspects
in the banking world that needs to be learned,
the banking system is a complicated system
with lots of control parameters
finance. The absence of protocol standardization
payment system in Indonesia, create party
to the three (banks and non bank) make
infrastructure of each payment. After
do some electronic money review on
Indonesia then got the result of comparison
between electronic money technology
using the concept of store value mapun access
product with electronic money
using standard bitcoin protocol. From the results
some criteria were obtained.
If the bitcoin technology is applied then
it can be possible to combine
computing resources (banks and non-banks)
to create a decentralized network
peer-to-peer network so the provider has
a shared data access system. The impact
for the community is simply to have
one kind of good electronic money shaped
physical and digital so it can be recognized by
various
