Indonesia’s central bank has banned digital currencies as payment method. In February 2014, the country decided to ban the use of digital currency. A press statement at that time read: “Bitcoin and other virtual currencies are neither currency nor legal payment tools in Indonesia. People are advised to be careful about Bitcoin and other virtual currencies”.
The recent announcement has lead to the closure of Toko Bitcoin and BitBayer. Bitbayer, an alternative to services like BitPay, has announced it will cease its services as of November 1st. Toko Bitcoin, which was popular for allowing customers to purchase electricity vouchers along with phone credits, has decided to stop accepting the digital currency as a means of payment.
This news would have a negative impact on Indonesia’s startup economy as well as many financial technology companies. The cryptocurrency world is getting vast everyday with currencies like Omisego (OMG) specifically focused on South-East Asian region. However, this ban will have no impact on the digital currency.