Indonesia clamps down on crypto as central bank prohibits using digital assets for payments By BTC Peers – Investing.com

Indonesia clamps down on crypto as central bank prohibits using digital assets for payments By BTC Peers – Investing.com

The central bank of Indonesia has voiced its plans to prohibit the use of cryptocurrencies for payments in the country. The governor of the apex bank, Perry Warjiyo, announced during a virtual meeting on Tuesday that digital assets such as would not be allowed for “other financial services tools.”

According to Warjiyo, cryptocurrencies are not recognized as a legal means of payment by the central bank or the constitution. For this reason, financial institutions are not expected to have any dealings with the asset class. To ensure that institutions comply with the ban, the central bank will mobilize teams to enforce the restriction.

While other countries such as El Salvador are openly pledging their support for Bitcoin, Indonesia does not seem to like the idea. The country recently shut down 26 investment and peer-to-peer lending platforms, including three trading platforms, for failing to obtain a license.