Bank Indonesia bans banks from using bitcoin for payments

The central bank has prohibited Indonesian financial institutions from using bitcoin and other cryptocurrencies as a means of payment or other financial services, said regulator head Perry Warjiyo. This was reported by Tempo.

According to the governor of Bank Indonesia, the ban is based on the constitution, as well as banking and currency laws.

To enforce policy compliance by financial institutions, the regulator will deploy regional supervisory authorities, Warjiyo stressed.

Earlier in the central bank announced plans to issue a national digital currency (CBDC) that would become a legal tender.

As noted in a 2020 Jump Capital study, Indonesia has emerged among the most promising for cryptocurrencies.

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