Prevent Bitcoin Transactions, Bank Indonesia Bali Combing a number of Tourism Areas.

Head of Representative of Bank Indonesia (BI) Bali Province, Causa Iman Karana said, BI continues to conduct sweeping in a number of tourist areas in Bali to prevent the use of bitcoin in transactions.

Moreover, in Bali had found a kind of ATM where doing bitcoin exchange transactions.

"Since two weeks ago we have been combing the areas of Ubud, Kuta and Seminyak, because in the medsos, informed of a kind of ATM bitcoin," said Causa, when contacted on Sunday (21/1/2018).

After sweeping, found there are 44 places of business or merchant that serves bitcoin transactions. Generally the place of business is a cafe.

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Prevent Bitcoin Transactions, BI Bali Combing a number of Tourism Areas
Sunday, January 21, 2018 | 17:40 hrs

Bitcon Illustration. (AP via The Guardian)

DENPASAR, KOMPAS.com - Head of Bank Indonesia (BI) Representative of Bali Province, Causa Iman Karana said, BI continues to conduct sweeping in a number of tourist areas in Bali to prevent the use of bitcoin in transactions.

Moreover, in Bali had found a kind of ATM where doing bitcoin exchange transactions.

"Since two weeks ago we have been combing the areas of Ubud, Kuta and Seminyak, because in the medsos, informed of a kind of ATM bitcoin," said Causa, when contacted on Sunday (21/1/2018).

After sweeping, found there are 44 places of business or merchant that serves bitcoin transactions. Generally the place of business is a cafe.

(Also read: PPATK Monitor Bitcoin Transactions due to Money Laundering)

BI then explains that transactions using bitcoin are not valid, as it is not a means of payment used in Indonesia.

Because the virtual money is not clearly issued by which country, and who is responsible for its circulation.

"After being given their explanation then stop the transaction using bitcoin," said Causa.

Causa explained, to get the bitcoin done with sale and purchase transactions. Comparison, 0.001 bitcoin equivalent to Rp 233 thousand.

In a number of transactions found for the purchase of goods at a price of Rp 50 thousand bitcoin users have to spend money of Rp 133 thousand. In addition, the successful confirmation of the transaction must wait more than 1 hour 30 minutes.

"Of that factor alone makes merchant owners stop using bitcoin, let alone BI has issued the announcement was not a valid means of payment," said Causa.

However, the presence of bitcoin demand is caused by two things, namely bitcoin as a means of payment and investment tool. Users take advantage of exchange rate fluctuations.

BI, according to him, has the authority to take action in terms of bitcoin if used as a means of payment. Meanwhile, as a means of investment is the authority of the Financial Services Authority (OJK).

"As a clear transaction tool it is not valid, regarding the investment affairs of OJK's authority," said Causa.