Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


Cryptocurrency and the Role of Indonesian Central Bank

Author(s): Gunawan Widjaja

Technology innovation played important role in human life. The creation of Bitcoin in 2008 has changed the concept of a payment system, which is currently control by the central bank. This research aims to find out what is the “possible future” role of the central bank in Indonesia in conjunction with the use of cryptocurrency as payment. The research is normative legal research. It conducted literature research through “google machine”. Data collected were secondary data, which consisted of primary, secondary, and tertiary legal sources. Content analysis was conducted to reduce the collected data to become only the most relevant and reliable data. Selected data were analyzed using the qualitative method to answer the purpose of the research. The result found that the creation of Bitcoin and other cryptocurrencies reduced the role of the Central Bank. Scholars suggested that the central bank creates its cryptocurrency. Discussion suggested that many roles can be played by the central bank without creating their bitcoin. The central bank can regulate the way cryptocurrency can be used as a new way of payment. The research can be used by (Indonesian) central bank to start thinking and conducting research on how it shall regulate the use of cryptocurrency as payment. The regulations shall start on how the cryptocurrency can be created, the way cryptocurrency can be transferred, the place and process of selling and buying cryptocurrency, and the use of cryptocurrency as payment. Meanwhile, other research results were introducing on how to make the central bank’s cryptocurrency; this research was the first to introduce the new role of the central bank to supervise the use of cryptocurrency as payment. The supervision that took place through the issuance of the central bank’s regulations is required to avoid money laundering.

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