Bank of Indonesia has banned the use of cryptocurrencies as a means of payment

The head of the regulator, Perry Warjiyo, explained that digital assets cannotshall be considered a payment instrument under thecurrent legislation.

Bank of Indonesia Governor Perry Varjiyo announcedthe introduction of a ban on the use of cryptocurrency as a means of payment or other instruments of financial services, Tempo reports. According to the head of the regulator, the ban is in line with current legislation, according to which digital assets do not belong to legal means of payment.

“Cryptocurrency is not a legal payment instrument under the Constitution, Indonesian Banking Law and Currency Law,” Varjiyo said.

To ensure compliance with the new ban, Bank Indonesia will strengthen the work of supervisors, he added.

Bitcoin became official last weeklegal tender in El Salvador. The relevant bill was adopted by the country's parliament, and then signed by the head of state. Renowned economist Steve Hanke predicted that the adoption of bitcoin in El Salvador could lead to the collapse of the country's economy.

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