Use of Bitcoin as Payment Instrument Banned by Indonesia's Central Bank
The use of bitcoin, the hotly debated digital currency that was launched in 2009, is banned by the central bank of Indonesia (Bank Indonesia). This week, Bank Indonesia released a press release in which it states that the bitcoin and other virtual currencies are not considered as currencies nor legal payment instruments in Indonesia. After China, Denmark and Russia, Indonesia has become the next country to ban the use of the bitcoin as it can jeopardize the country's financial stability according to the assessment of the bank.
The popularity of the bitcoin has grown since it was first introduced in 2009. Some regard it as a safe haven and believe the bitcoin will change the world in a positive way. Others, however, point at the high risks of this virtual currency. Being an independent currency (which is not monitored or regulated by any government or other government-linked institution) it can show high volatility and is easier to be used in illegal activities such as money laundering, tax evasion or even the financing of terrorism.