Indonesia's Central Bank Mulls Bitcoin Payments Ban

Indonesia's central bank has revealed that it is considering new regulations that would outlaw bitcoin transactions from 2018.

Bank Indonesia's head of transformation, Onny Widjanarko, said yesterday that the bank is seeking the ban due to concerns over bitcoin's potential use in terrorism financing, money laundering and drug trafficking.

The central bank, which has the authority to decide policy on monetary affairs, is currently conducting a review to determine whether bitcoin would be regulated under existing e-money rules or in a separate framework addressing cryptocurrencies.

According to a report by The Jakarta Post, he stated:

The official further appealed to merchants not to accept bitcoin as a payment, saying Bank Indonesia would not be responsible for the losses incurred via bitcoin transactions.

Should Indonesia follow through with the plans, it would join other nations such as China in cracking down on cryptocurrencies. In early September, regulators banned ICOs and forced exchanges to close. However, transactions in bitcoin have not been outlawed.

Russia's deputy finance minister also announced in September that he expects pending legislation on cryptocurrencies to feature a ban on payments.

Bank Indonesia image via Shutterstock