Bank Indonesia Ready to Trial Blockchain Technology Next Year

Bank Indonesia said it would soon conduct a trial of blockchain technology in Indonesia next year. Trials are conducted to check what are the advantages and disadvantages before being implemented.

"Blockchain is not to be confused with bitcoin. Blockchain is a method that uses distributed ledger technology, while bitcoin is one of its products. The blockchain has been tested by several central banks," said the Chief Executive Director of the Payment System Policy Department of Bank Indonesia, Eni V. Panggabean, Thursday (26/10).

However, Eni said that his party had not been able to ensure the real use of Blockchain technology for the Indonesian market. The reason is, the central bank needs to do a lot of studies before making a final decision, taking into account the advantages and disadvantages.

As far as his observations, blockchain has also been used in the capital market industry, including PT Kustodian Sentra Efek Indonesia (KSEI) and NASDAQ.

According to Eni, if the results of the trials conducted by the central bank yield positive results, of course there is great potential to utilize technology in Indonesia.

"Of course we can't rush to do something that needs to be known first what kind of goods. How to use it, we ourselves don't know yet. In the transportation and air force sector, many use Blockchain, including sectors related to finance."

Previously, Bank Indonesia still insisted that bitcoin was not a legal tender. Because it has a high risk, the possibility of its legality in Indonesia is very small.

The Governor of Bank Indonesia Agus Martowardojo appealed to people who understand bitcoin to help promote the discontinuation of the use of the new technology-based payment instrument.

"Bitcoin is not a [legal] means of payment. But if it turns out to be used as a means of payment, it will certainly be dealt with," he explained. Tirto.

Agus considers bitcoin far from economic and security principles. Therefore, the central bank considers it not a legal tender in Indonesia.

"This system [bitcoin currency] is also not compliant with anti-money laundering [principles], and what we want to guard against are systemic risks that can arise without prudence," he concluded.