Can Bitcoin Become a Legal Indonesian Payment Instrument?

The formation of Bitcoin started from a Genesis Block, which was created by Satoshi Nakamoto on January 3, 2009 with a hash value in the form of letters and serial numbers with a combination of numbers. Satoshi inserts a sentence which is a form of satire in a situation, the failure of banking will be borne by the taxpayers through the bailout fund issued by the government: The Time 03/jan/2009 Chancellor on brink of second bailout for banks The application they make in terms of technology is almost similar to the working method of Bitcoin and also with the way they describe a technology that cannot be reversed by PC logic, the sentence is found in bitcoin drafts or patent documents. This is concluded by the fact that he has a strong background in the world of studies and cryptography, including the dozens of patents he filed related to blockchain and digital currencies. It's just that the electronic evidence presented by Craig Wright seems dubious, and Bitcoin expert analysis also reveals that the evidence is dubious. Since then, in 2009, Bitcoin began to be launched and developed and faced various revisions that were implemented based on suggestions and input from members or the Cypherpunk community, including regarding Finney, who was fascinated by this new virtual currency idea. Bitcoin was originally worthless, but over time gained a place in various communities as a virtual commodity run by an independent system. The price of Bitcoin also goes up, as more users continue to participate. Although Bitcoin is not one of the cryptocurrencies in the world, currently Bitcoin is the virtual currency with the most market valuation in the world, with a price of 1 BTC (Bitcoin) which is around Rp. 90,000,000, - (ninety million rupiah), we can see that on the exchange site, namely indodax. Each object, item, or the other certainly has its own advantages and disadvantages. Likewise with Bitcoin, when Bitcoin became popular by having an anonymous character when transacting, but behind the advantages of Bitcoin, of course there are disadvantages. Advantages of Bitcoins: a. Market value Bitcoin takes the lead by being ranked at the top of the list of the highest market valuations and the most expensive cryptocurrency. Within eight years, the price of Bitcoin has skyrocketed to be worth more than tens of millions of rupiah from what was previously worthless. b. Low Transaction Fee In my opinion, because the value of the fee at the time of the transaction is not determined from the number of Bitcoins transacted, but from the size of the transaction, which is calculated in bytes, is one of the factors that bitcoin is busy using. The standard transaction fee in Bitcoin is 10,000 satoshi which if converted into rupiah is Rp 500, - (five hundred rupiah) for each transaction. c. Resilient I think one of the reasons Bitcoin has survived to this day is its robustness to various challenges. d. Transaction Range The reach of the bitcoin transaction system can reach anywhere in the world wherever it is as long as it is still connected to the internet, so that national or international transactions can be carried out easily using bitcoin. Disadvantages of Bitcoins:  Privacy Issues Bitcoin was designed by Satoshi Nakamoto with a private model in which transactions attempted and addresses entered by a user have no direct connection with the owner's real identity. Everyone can join the bitcoin system, from newcomers to pioneers without having to register first, because there is no controlling organization or central server in the bitcoin system that regulates users or transactions that occur in the system. b. Bitcoin's Bad Picture in Crime and Ransomware As a cryptocurrency that has an anonymous currency character, bitcoin is not only used as a payment tool for daily transactions, but also as a payment method for users who do not want to be tracked by the government or law enforcement. c. No Inflation

The bitcoin system itself does not know inflation, because the value per bitcoin continues to increase from year to year. This looks good at first glance, but I do not agree with this opinion. Because without inflation, the economy around the world will slow down because everyone will choose not to spend their money and will delay until the value of the money increases again. In some countries, bitcoin is still full of pros and cons, one of which is Indonesia. In Indonesia, bitcoin is not recognized as a currency as a substitute for Rupiah, which is the original currency of Indonesia. This is based on Law no. 7 of 2011 concerning Currency, in Article 1 number (1) and (2) which states that Money is a legal tender. While what is meant by currency is money issued by the Unitary State of the Republic of Indonesia, hereinafter referred to as Rupiah. In addition to rejecting the existence of bitcoin, this is further clarified in Chapter V The Use of Rupiah in Article 21 paragraph (1), namely that Rupiah must be used in: a. every transaction that has the purpose of payment; b. settlement of other obligations that must be met with money; and/or c. For users or consumers who do not use Indonesia's legal currency, Rupiah in transactions can be subject to Article 33 which explains that anyone who does not use Rupiah in: a. every transaction that has the purpose of payment; b. settlement of other obligations that must be met with money; and/or c. other financial transactions, as referred to in Article 21 paragraph (1) shall be subject to a maximum imprisonment of 1 (one) year and a maximum fine of Rp. 200,000,000, - (two hundred million rupiah). 17 Related to Bitcoin, So we can conclude that the government does not prohibit the use of virtual currency or bitcoin, but prohibits PJSPs that have obtained permission from Bank Indonesia (BI) to process payment transactions using virtual currencies. Virtual currency or bitcoin is not a legal payment instrument in Indonesia and Bank Indonesia (BI) is not responsible for the risks that arise from the use of virtual currency by citizens.