Previously we have discussed material on Insurance Principles. Now we will discuss the Legality of Cryptocurrency and the Legal Consequences of Using Cryptocurrency in Indonesia. Let’s see the discussion.

The development of world trade which is rapidly increasing also has an impact on the payment system which is also developing. Along with the increasing globalization of the world economy, people’s needs for speed, convenience and security of financial transactions are increasing. So we need a payment system that is quite reliable and easy for banking customers. The payment system is a mechanism that includes the arrangements used for the delivery of payments through the exchange of values ​​between individuals, financial institutions both domestically and globally.

Cryptocurrency is a digital currency that uses cryptographic technology as security and is difficult to counterfeit and where transactions can be carried out or must be carried out on the internet network (online) for each data transaction, it will be encrypted using certain cryptographic algorithms.

The difference between cryptocurrencies from existing currencies is that these cryptocurrencies are not issued by a central authority, there is no interference or manipulation by the government. At first this cryptocurrency was not seen as an exchange rate that could represent existing digital currencies. However, due to its rapid development, this cryptocurrency is immediately known by many people. Bitcoin was invented by Satoshi Nakamoto on January 3, 2009 with the implementation of a peer to peer (connection network). Then Ethereum (ETH), Bitcoin Cash, Lite Cash, etc. Because it is in the form of digital currency, this way of distributing cryptocurrency is given to those who do mining.

The problem faced is how can cryptocurrencies be used for payment systems in Indonesia?

In Law no. 23 of 1999 concerning Bank Indonesia that the payment system also includes payment instruments and banking procedures so as to make payment instruments an important component of the payment system, this makes the payment system need payment instruments to support the system in accordance with the procedures and procedures has been provided. To declare that a payment instrument is valid, that is, it has a condition that it is generally accepted or is acceptability. In order to be recognized as a common medium of exchange, the payment instrument must have value and its existence is guaranteed by the government in power.

Having a stable value is also an important requirement for payment instruments, this is very important because as a medium of exchange, it must have a standard value, where the role of the ruling government regarding the value of payment instruments is Bank Indonesia. Written in Law no. 23 of 1999 concerning Bank Indonesia that one of the tasks of Bank Indonesia in order to achieve and maintain stability in the value of the rupiah is to regulate and maintain the smooth running of the payment system. This needs to be kept in balance so that the value of money as a medium of exchange does not fluctuate, so the stability of the value in rupiah currency types must be in accordance with global currencies.

The link between cryptocurrency and the use of money here as a means of payment is specifically defined as a medium of exchange. If money as a means of payment has been around for a long time now, but can cryptocurrency as a legal tender in Indonesia be viewed from the same basic use as a medium of exchange, these two types of payment instruments cannot be equated because they have advantages and disadvantages.

Money and cryptocurrencies have value, this is important because to become a means of payment as written in Bank Indonesia Regulation Number 17/3/PBI/2015 concerning currency states that to become a currency that is generally accepted in society, it must have value stability . or value in its use.

Money and cryptocurrencies certainly have significant differences, from the characteristics of their different uses and different ways of making or getting them. If money is referred to as mass produced or mass produced by one party who has the right to make it, it is different from cryptocurrency. Crypto currency is made of a peer to peer network which in other words is a blockchain system that binds to each other so as to create a code that is accessed by mining parties so that the code becomes a valuable number.

This makes cryptocurrencies to be obtained from anywhere as long as there is a network that has the blockchain accessed by mining so that the source does not come from one party, but from tens to hundreds of the owners of the peer to peer network. This is the significant difference between money and cryptocurrency in terms of making and how to get it.

In fact what happened in Indonesia, cryptocurrency cannot be used in Indonesia to replace the existing currency, conventional currency is a currency that is integrated with Bank Indonesia so that its circulation or circulation can still be monitored temporarily which becomes risky in the use of cryptocurrencies in payment instruments. in Indonesia, the circulation is invisible because it is not centralized or in this case it is called a peer-to-peer network whose use is decentralized without a central server or server.

In Indonesia, Bank Indonesia is the only monetary authority in the payment system using money so that Bank Indonesia can determine what types of payment instruments are applicable in Indonesia. In Law No. 7 of 2011 concerning Currency, article 11 explains that Bank Indonesia is the only institution authorized to issue, circulate and/or revoke and withdraw rupiah. It is clearly stated in the article that only Bank Indonesia has the right to manage rupiah or the prevailing currency in Indonesia.

Thus, it can be concluded that money as a means of payment or a medium of exchange must have several elemental requirements regarding the related currency, cryptocurrency to become a new financial transaction system in Indonesia is a relatively new technology and needs to be studied further. There are many aspects of banking and the world of fintech that need to be learned to be able to use cryptocurrencies as a means of payment or a new medium of exchange. The banking world has standard protocols and complicated parameters in providing standardization of payment systems, cryptocurrency so far does not have a clear standardization because there are no competent authorities in dealing with the problem of using cryptocurrency in Indonesia, the person responsible for the use is only owned by the users themselves regarding that as a tool. For payments, cryptocurrency becomes a means of direct payment between two parties without the need for an intermediary or no third party intervention so that monitoring its movement and circulation will be more difficult than conventional money that is already circulating. Cryptocurrency can be expressed as a solution as a payment system at another level, the level of demand for this type of cryptocurrency is not comparable to the existing supply. What will happen then is that cryptocurrency will not become a means of everyday payment but become a means of payment or a medium of exchange which will be more specific at a certain level. For now, cryptocurrency can only be an investment tool whose rounds are only bought and then sold, it is difficult if cryptocurrency is directly paired with money for daily use of payment instruments.


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