Another day in crypto, another government banning Bitcoin
Today, a new set of regulations for Bitcoin and other cryptocurrencies is set to be released by the Bank of Indonesia Governor, Agus Martowardojo. It will likely introduce the complete ban of Bitcoin in an effort to try preserve the sovereign rupiah.
A definite blow to the growing crypto industry in Indonesia, but an even greater blow to the nearly two thirds of people who remain unbanked in the country.
One of the enabling features of crypto-currency is exactly giving those without access to banking, a means to transact and manage their own money. This is why crypto-currencies have a inverse relationship to the economic and financial health of a nation, inflationary or even hyper-inflationary currencies make it's holders progressively poorer.
To counteract this, deflationary assets such as Gold and now Bitcoin have become more popular. Not only can you hedge against continued devaluation of your native currency, you also take control of your own wealth and property, cutting out the need for a pricey debt leveraged custodian dragging the value of your money to oblivion whilst lowering the average quality of life.
Enslavement to the Government
As mentioned before, crypto assets generally respond positively to these kinds of events, you only have to look at what happened to the price of Bitcoin as China moved towards banning it.
Steemit has a very large Indonesian community who recognise the empowerment of being able to manage their own money as well as working for a decentralised and autonomous corporation. For many, it is the first time they have been able to earn and save money without having to hide fiat cash in shoe boxes under the bed. It is also the first time they have been able to participate in the global albeit limited STEEM economy, accessing digital goods and services simply by virtue of being holders of STEEM.
By banning crypto-currencies, the government is forcing it's people to become enslaved to the domestic banking system. Being forced to use the rupiah means that should the currency inflate too quickly, it's holders must continue working (and much harder at that) to preserve their relative 'wealth'. It is the classic method governments use to keeping their people in line and always working.
The end of Indonesian Steemit community?
Growth on Steemit has come largely from countries such as Indonesia because the opportunity cost of contributing on the platform is a net positive alpha. It is far easier to onboard people from countries who appreciate a couple of dollars in exchange for hard work, than it is for people in developed countries who snarl at rewards any less than triple digits.
Members of the Indonesian community will feel repressed in their native country, but more than ever, they feel empowered with opportunity from Steemit and crypto as a whole.
We need to continue to support developing countries because aside from appreciating the money more, their voices are suppressed the most by their governments.