Central Bank of Indonesia: Cryptocurrencies Have Great Potential

An Indonesia’s local Islamic council issued a fatwa in the fall of 2021 stating that Bitcoin is not subject to Sharia. As a result, Muslims must ignore this tool. Nevertheless, the popularity of cryptocurrencies in the country continues to grow.

The head of the Bank of Indonesia, Doni Primanto Joewono, has acknowledged digital currencies create conditions for the modernization of financial infrastructure. However, due to the volatility of such instruments, the risks for the state banking sector increase.

In order to neutralize the threats, it is necessary to legalize the industry and introduce the most stringent legislation.

The head of the Central Bank has emphasized at the G20 summit that if the states slow down, then Bitcoin and other cryptocurrencies will remain risky assets and can damage the macroeconomics.