Indonesian Ex-Finance Minister Wants National Crypto to Compete with BitcoinFebruary 6, 2018
An ex-minister in Indonesia spoke about the merits of a central bank-issued cryptocurrency to counter the idea of banning the circulation of alternatives.
As many countries struggle to get a tight grip on their own local crypto scenes, Indonesia’s ex-Finance Minister Chatib Basri considers that the country should take another direction.
Rather than stopping the circulation of Bitcoin, he said the island nation should instead choose to mint its own crypto to compete with it.
“So, [Bank Indonesia] needs to create something that can be monitored. I understand thier concern over bitcoin […] as there is no hidden asset. But we cannot ban it,” said Basri.
Since it is hard to track Bitcoin transactions in a clear manner, many national governments consider the crypto a threat that may help the criminal.
The ex-Minister isn’t the only person who toyed with the idea of a national crypto for Indonesia.
Bank Indonesia’s Head of Payment System Policy, has also looked into giving a “virtual rupiah” to counter some of the challenges that other cryptocurrencies present.
However, as he said, this would be the first time a central bank actually makes the move.
In the past, Russia was considering issuing a crypto ruble, but not for the same reasons.
President Putin is considering the idea to avoid punishments, much in the same way that Nicolas Maduro wishes to abuse his “Petro” coin in Venezuela.
Indonesia’s reason for using a crypto would be more in line with Britain and Israel, both of which seek to make an interaction that can be tracked and presents ease to their citizens.
During announcement, Mark Carney, Governor of the Bank of England, warned that it would not be a good idea to issue crypto alongside paper money.
“You [could] create a situation where you can have direct [bank] run. So as soon as there were any concern, people can switch in their account at the Bank of England,” he said.