Indonesia cracked down on DeFi competition against CBDC

The central bank is mobilizing supervisors to enforce crypto payment ban

The governor of Indonesia’s central bank, Perry Warjiyo, has announced a grand mobilization of official supervisors to enforce the country-wide bans on financial institutions to offer payments with crypto assets. Warjiyo emphasized cryptocurrencies to not be legitimate under the Indonesian constitution, Bank Indonesia Law and Currency Law.

This ban has been in place since late 2017, while the Commodity Futures Trading Regulatory Agency legitimized cryptocurrencies as speculative commodity, and for no other use cases, in February 2019.

It seems, that Bank Indonesia does not want to have any DeFi competitors on the market, since the institution has announced working on a CBDC project on May 25, just a week prior to the new warning.

Bank Indonesia revealed concordant to the announcement, that digital payments have seen a 60.3% year-on-year increase, stating that a state-backed digital currency aligns with its policy of digitalization, according to the Coin Telegraph.

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