The supervisors are being sent out by the Indonesian central bank to make sure that the local institutions in the vicinity are complying with the ban over crypto payments all around the country. Perry Warjiyo, the governor of the central bank of Indonesia, is now assigning the official supervisors for the implementation of the ban over the financial institutions which are using crypto assets as a source of payment.
Warjiyo restated his words in a seminar on Tuesday 15th of June 2021 that the local financial firms are not allowed to facilitate the utilization of the cryptocurrency for being a means of the settlement of the payments and other financial services. The governor of the central bank emphasized the declaration that the crypto assets are not legal as the means of payments following the currency law, constitution of Indonesia, and the law of Bank Indonesia. He further added that the field supervisors would be allocated and sent out for the guarantee of the local institutions’ adherence to the state policies.
The prohibition on the financial institutions from incorporating cryptocurrency as a payment method has been applied since 2017. On account of that restriction, the bank is continuously preventing the payment processors from utilizing the cryptocurrency for the settlement of the transactions in the previous year.
Although the central bank has announced a prohibition over the use of crypto for payments and warned against the virtual currency in 2018, The Commodity Futures Trading Regulatory Agency of Indonesia has issued regulations in 2019 to legitimize the cryptocurrencies to be speculative commodities and cleared the path for the derivatives of cryptocurrency to be utilized in local exchange trades.
A legal framework has been provided by the instructed guidelines that consider crypto assets to be traded as the commodities capable of becoming the subject of the contracts and different derivatives to be used in the future stock market. After one week of his announcement about the Indonesian central bank to work on the launch of central bank digital currency, Warjiyo declared a warning that emphasized the ban over crypto usage as a means of payment.
The Bank for International Settlements states that 20% of the world’s population is represented by the central banks, and all of them are anticipated to issue their CBDCs within the coming three years.