In response to current global events, the governor of the Central Bank of Indonesia, Doni Primanto Joewono, urges the government to consider the use of cryptocurrency and its benefits. He believes that, even with certain risks, it can boost the financial situation, BeinCrypto confirms.
During a recent G20 event in Bali, Governor Joewono said that in order to keep cryptocurrencies in check, a regulatory framework is needed. He also stated that financial digitization helped boost the crypto popularity during the COVID-19 pandemic, even though the Indonesian government regards crypto as a commodity. The governor did add that the central bank is looking into making a central bank-issued digital currency (CBDC), though no further information has been provided on the matter.
Despite his enthusiasm, governor Joewono faced some setbacks with the National Ulema Council (MUI) which deals with concerns in Islamic finance and implementing Shariah law. The MUI affirmed crypto to be forbidden, mentioning gambling, uncertainty, etc. Having the world’s largest Muslim population, Indonesia will only be granted participation in cryptocurrencies by MUI if it has an evident benefit.
Regardless of the MUI hindrance, the government has authorized the trade of crypto assets as well as commodity futures products as long as it is monitored by the trade ministry. To shelter retail investors, a cryptocurrency exchange was set by the government.
All in all, the state of cryptocurrency worldwide is a bit shaky at the moment due to several market setbacks, religion being one of many in Indonesia. Despite this, it is expected to gain further popularity in the upcoming decades.