Bank Indonesia Investigates Bitcoin Use

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Bank Indonesia is investigating the alleged transaction of bitcoin in Bali.

The indication of the use of bitcoin was found by Bank Indonesia branch of Bali from social media monitoring. Furthermore, the findings were reported to the center and began to be followed up by the government.

"In a number of content uploaded to social media, we know that Bali seems to be a haven for bitcoin transactions," the head of Bank Indonesia branch Bali, Causa Iman Karana.

Officers from Bank Indonesia began an investigation at the end of December 2017, following the release of a rule prohibiting sale and purchase transactions using bitcoin.

From the investigation was later found that there are two cafes that still use bitcoin as a means of payment. There are also 44 other businesses that previously received bitcoin transactions, but have now stopped.

Dozens of businesses are among others engaged in the field of rental cars, hotels, travel agencies, and jewelry stores.

Karana said one of the cafes received a transaction using bitcoin for a bill of more than Rp 243,000, equivalent to 0.001 bitcoin.

One bitcoin transaction takes about one and a half hours to complete processing. The seller also collects the transaction fee of Rp 123,000.

"Our next step is to block them in accordance with applicable law and we ask them to stop using bitcoin," Karana said.

"We together with the Special Criminal Investigation Directorate will confirm the rule that all transactions in Indonesia must use the rupiah currency," he added.

To note, the bitcoin users in Bali on average is a stranger who was layover there. Bali itself is one of the largest tourist centers in Indonesia, where gathering immigrants from various countries.

Previously, Bank Indonesia called bitcoin as a high-risk, speculative virtual currency, because it was not managed by certain legal entities and did not have a clear asset base in pricing.

Central Bank of the country also prohibits financial transactions using bitcoin because only one currency that applies in Indonesia, namely rupiah. Compas. Com.