Interest and Institutional Analysis in Bitcoin Rejection by Bank of Indonesia (original) (raw)
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The development of E-Commerce in the world has impacted to the payment system which requires such fast, secure, and private. In 2008, a new payment method was introduced by Satoshi Nakamoto which called Bitcoin. Bitcoin is a series of programming code that secured by using cryptographic method as a peer-to-peer virtual and independent currency. Since its launching in 2009, it has generated volumes of debate in economic press whether will Bitcoin be an opportunity or merely a disruptive innovation in the future. Besides, the legality of Bitcoin in Indonesia is also questionable. The fact in the field approximates Bitcoin users in Indonesia reached 700,000 in the late 2017. According to the Article 1 of Indonesian Currency Law 2011, Currency is a money which issued by the State. Meanwhile, Bitcoin is not completed that qualification due to the independent issuance of it. Conjointly, Cybercriminals are attracted to choose Bitcoin as the currency in crime. It is because the distinctive characteristics of decentralization and pseudo-anonymity in general, and yet Bitcoin has assessed as representing only a low money laundering risk. By using secondary data and juridical-normative method, the research aims to analyze the legal existence of Bitcoin as a new payment method in the form of virtual currency and to provide best solutions for preventing disadvantages resulted from Bitcoin's existence itself. Furthermore, the research also highlights three strong factors should be settled by Indonesian government in dealing Bitcoin's matters i.e. demystifying of Bitcoin concept, providing strict substantial provision in preventing Cryptocurrency misuse, and promoting the awareness among criminal justice professionals and law enforcement officers.
The Influence of Institutional Voids in the Institutionalization of Bitcoins as a Currency
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Bitcoin is a social movement, which promises free and decentralized money, absent from the traditional regulatory institutions, but it can be challenging for financial industry regulators and other players in the financial markets. Thus, our study aims to analyze how the institutional voids manifest in the bitcoin institutionalization process as a currency. We adopt the institutional theory, from the perspective of institutional voids, in order to observe the concepts in emerging markets that show the difficulty or the beginning of the institutionalization of bitcoin as a currency. The institutional theory provides an opportunity to understand the reasons for using particular practices, actions, or manifestations. Our method is based on a qualitative exploratory approach with semi-structured interviews to understand how financial market experts perceive this phenomenon. Our results show that it is possible to identify how institutional voids manifest themselves, reinforcing the debate on whether bitcoin is, in fact, a currency. Contribution/Originality: This study analyzes bitcoin as an economic object through the logic of institutional voids. Thus, with the institutional perspective as a background and theoretical support, it is examined how the institutional voids are manifested in the process of institutionalization of the bitcoin as a currency. non-existent, that is, institutional voids (Khanna & Palepu, 1997). In this sense, institutional voids are characterized by information asymmetry, misguided regulations and inefficient legal systems that affect the product market,
CRYPTOCURRENCY AND THE ROLE OF INDONESIAN CENTRAL BANK
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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The concept of blockchain and cryptocurrencies is one of the most popular concepts of recent years. Cryptocurrencies were first introduces with Bitcoin in 2008 and now they have an increasing variety and popularity. Recent developments in technology firms have brought into question whether there is a relationship between Bitcoin and technology indexes. To this end, this study investigates the causality relationship between Bitcoin and technology indexes using monthly data between the years 2016 and 2021 in G7 and E7 countries. To test the causality relationship between the variables, the Hatemi-J (2012) asymmetric causality test was used. Hatemi-J (2012) test reveals that the relationship between bitcoin and technology indexes becomes different for G7 and E7 countries. The results suggest that developed countries affect bitcoin prices while developing countries are affected by Bitcoin prices. The conclusion is that findings point out the existence of an asymmetric relationship between the series for G7 and E7 countries.
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The speed of the adoption and use of cryptocurrency that utilizes blockchain technology as its central infrastructure is expanding globally, including in Indonesia. It has promising prospects as a future asset and payment instrument. However, the regulations in Indonesia are often delayed and inadequate for dealing with cryptocurrency's developments. This research is intended to analyze the approaches, regulations, and protection of the use of cryptocurrency. This study argues that the regulatory approach to using cryptocurrency is balanced, while Indonesia has a partial status in cryptocurrency legality. The government’s protection of cryptocurrency investors is adequate in using cryptocurrency as a commodity traded on futures exchanges with a license from Bappebti. A progressive policy for establishing the Digital Asset Law by the government is important due to the resultant clarity in the regulatory status of cryptocurrency will allow the ecosystem to grow and promote innovat...
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Along with the erosion of traditional currencies, namely paper money and coins due to the impact of modernization of global financial technology, digital currencies have emerged, one of which is cryptocurrency. Cryptocurrency is a digital currency that uses cryptographic technology as a security system that is difficult to fake, transactions can be carried out via the internet (online) and each data transaction uses a certain cryptographic algorithm encoding. However, the existence of cryptocurrencies is still a matter of debate in Indonesia. This may be due to differences in Islamic law regarding cryptocurrencies. to find out how the existence of cryptocurrencies in Indonesia, secondly, to find out how cryptocurrency law is in an Islamic perspective. The research method uses a qualitative approach. The data in the study are secondary data derived from articles, websites, and other sources. The results show that cryptocurrency is an illegal transaction according to the government but not an illegal transaction because it has been inaugurated by the Commodity Futures Trading Regulatory Agency. Transactions in cryptocurrencies are legal but against the law because there is speculation, gharar and maysir.
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Background. Bitcoin is the world's first digital currency that uses the concept of Cryptocurrency, which is a digital asset designed as a medium of exchange using cryptographic techniques to secure transactions and control the administration of its currency units that are likely to continue to grow in the future. Based on Law No. 7 of 2011 on Currency or cryptocurrencies, Bitcoin cannot be considered as legal tender in Indonesia. Purpose. It is said to be a means of payment because the means of payment in Indonesia is the Rupiah, but based on the Regulation of the Minister of Trade of the Republic of Indonesia Number 99 of 2019, crypto assets are one of the commodities that can be used as the subject of futures contracts traded on futures exchanges. Method. his research uses a statute approach. In addition, a case approach is also used to find out the ratio decidendi used by the Constitutional Court judges in deciding cases of judicial review of laws related to indigenous people...
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Summary The research aimed to evaluate suitability of Bitcoin and its platform in emerging markets such as Vietnam. We used qualitative analysis combined with data collection method published, statistics, analysis, synthesis, comparison, to generate qualitative comments and discussion; evaluate results, the article analyzed and evaluated the impacts of Bitcoin and virtual currency on society of Vietnam, both positive and negative sides. It was found that virtual currency not accepted in Vietnam as means of payment yet, while many nations in the world accept it. We need to complete the legal framework for virtual currencies in general, Bitcoin in particular. The State should continue to have policies to improve information technology infrastructure, build and improve the capacity of the contingent of financial experts, encryption, and security experts and give warning risks in virtual currency transactions. The scientific value of paper is using experiences from previous studies in o...
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The purpose of this study is to explore the determinants of bitcoin adoption among individuals and also to assess whether the usage of the bitcoin technology for payment of transactions is preferable to other modes of payment. The study proposed a conceptual model analyzing the driving factors that influence a behavior towards the utilization of bitcoins in a developing economy, Ghana, through the lens of the unified theory of acceptance and use of technology model. A qualitative method which employed a purposive sampling technique in the selection of twelve respondents who understand and utilize the bitcoin technology was used. The findings showed that majority of the respondents were exceptionally positive about the idea of bitcoin and had the goal to keep utilizing it, on conditions with respect to the usefulness, the ease of use, the secureness, and the price value of bitcoin. The study offers practitioners with a framework based on theory that goes beyond not only investigating...