Wakil Menteri Perdagangan (Deputy Minister of Trade) Jerry Sambuaga discussed the growing popularity of cryptocurrency assets in Indonesia during a webinar. He revealed the five top cryptocurrencies by market capitalization: Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB (BNB), and USD Coin (USDC).
Cryptocurrency is essentially digital currency used as a means of exchange for online transactions. It is secure due to its cryptographic foundations and allows users to transact without third-party interference. Blockchain, the computing system underlying crypto assets, exists to record and distribute transaction information worldwide.
The need for specialized hardware and software limited the use of cryptocurrency until 2009 when Satoshi Nakamoto introduced decentralized Bitcoin. This paved the way for other crypto assets, which continue to rise in popularity.
In Indonesia, crypto assets cannot function as payment instruments but are allowed as investment commodities under the Surat Menko Perekonomian and Bappebti’s Regulation Number 5 of 2019. Crypto investments fall under the supervision of the Commodity Futures Trading Regulatory Agency (Bappebti). However, cryptocurrencies are not considered legal tender according to the 2011 Currency Law.
Though perceived as secure, cryptocurrencies carry inherent risks. Fluctuating and uncontrollable value, along with the lack of regulation by the Financial Services Authority (OJK), must be comprehended before heavy investment.
For those concerned with the risks associated with crypto investments, traditional investment instruments like bonds, deposits, and mutual funds are available. Bonds are debt securities issued by governments or corporations, providing interest as a form of asset ownership. Deposits offer a relatively higher percentage of interest compared to regular savings and allow for adjustable tenure. Mutual funds are a collection of funds managed for investment in various financial products like stocks and bonds, gaining popularity among young investors.
In 2021, the value of crypto transactions rose sharply from 65 trillion to 859 trillion rupiah. To create a conducive crypto ecosystem and meet high public trading interest, the Deputy Minister mentioned plans to establish a crypto stock exchange to protect consumers from fraud.
These traditional instruments, along with emerging crypto assets, present diverse investment opportunities for the Indonesian populace, reflecting the evolving nature of financial investment in the region.
Crypto News Flash does not endorse and is not responsible for any content, accuracy, quality, advertising, products, or other materials related to cryptocurrencies. Readers should do their own research before taking any actions. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.