International Monetary Fund (IMF)
Country : Indonesia
Delegate : Farida Nur Azizah
Topic : Addressing the Emergence of Cryptocurrency
We have to know that Artificial Intelligence understands crypto currency and 3D printing, knows internet of things and virtual reality. Everything must follow, otherwise we will fall
behind. Don't take care of the little things, forget about future affairs - President Joko Widodo
Cryptocurrency is a digital asset that is designed to work as a medium of exchange using strong cryptography for financial transactions, controlling additional unit control, and verifying asset transfers.
The most well-known crypto currency is bitcoin, apart from bitcoin there are thousands of cryptocurrencies, including ehtereum, litecoin, ripple, stellar, dogecoin, cardano, eos, tron.
Cryptocurrencies that use decentralized controls as opposed to centralized digital currencies and a central banking system. [1]
he first decentralized cryptocurrency, bitcoin, was created in 2009 by developer Satoshi Nakamoto. it uses SHA-256, a cryptographic hash function, as a proof of working schema. [11]
In April 2011, Namecoin was created in an attempt to establish decentralized DNS, which would make internet censorship extremely difficult. Soon after, in October 2011, Litecoin was released. it was the first cryptocurrency to successfully use scrypt as a SHA-256 hash function.
Another well-known cryptocurrency, Peercoin is the first to use a proof-of-work / proof-of- stake hybrid. [12]
The UK announces a Ministry of Finance tasked with conducting cryptocurrency studies, and what role, if any, they can play in the UK economy. The study also reports whether regulation should be considered. [13]
Crypto currency risk:
1) Risk to the payment system
According to BI, there are virtual currencies that cannot exchange their currency for flat money, especially with high price volatility. In addition, neither party handles customer complaints and the security of the surrounding system and ecosystem has not been proven. Not to mention, there is no guarantee of settlement.
2 ) Risk to financial system stability
This risk, in the event of a bubble burst, is due to the interaction between virtual currency and the real economy. Not to mention, the risk of high price volatility, because its value is determined by the expectations of future supply and demand.
Countries that Legalize Cryptocurrency to get taxes and other benefits namely Finland,Luxembourg,France,Spaniard,German,Sweden,Japan,Switzerland,Lebanon,Canada,J o rdan, and Mexico. The government in Indonesia only sees the circulation of Cryptocurrency in Indonesia and has not made regulations related to this. The new government only filed an appeal regarding the high risks contained in Cryptocurrency and reimbursed this risk as a personal risk that was not borne by the government.
Our country indonesia is against crypto currency because. Among the countries that take a clear stance there is Indonesia as a country which can be said to be still unstable in attitude. Whereas Indonesia through a press release from Bank Indonesia No: 16/6 / Dkom dated 6 February 2014 stated that the Virtual Currency (Crypto Currency) is not a legal currency, but in this case Bank Indonesia does not prohibit its use.
Then if we discuss Cryptocurrency from a legal perspective, Cryptocurrency will cause conflict with applicable laws, including Law Number 7 of 2011 Article 1 Paragraph 1 which contains:
Money is money issued by the Unitary State of the Republic of Indonesia, hereinafter referred to as Rupiah.
Likewise with Law no. 23 of 1999 Article 2, paragraph 2, the sides are:
"The rupiah currency is a legal tender in the territory of the Republic of Indonesia."
From these two laws, it can be concluded that Cryptocurrency cannot be used as a legal means of payment in Indonesia. Then in relation to Law Number 11 of 2008 concerning Information
Electronic Information and / or Electronic Documents are declared valid when using an electronic system in accordance with the provisions regulated in this Law.
So if described for the common interest and good in the future, there are several things that might be implemented, including:
a. Maintain the sovereignty of the Rupiah as the currency in effect in the Unitary State of the Republic of Indonesia.
b. Positioning Crypto Currency is like a foreign currency that can be exchanged, traded, or mined.
c. The importance of preparing regulations that do not conflict with the circulation of Cryptocurrency.
d. Integrating Cryptocurrency with Rupiah as an alternative to payment in cyberspace, or for the benefit of international transactions. The point of this point is that currency can be an alternative means of payment such as digital money from rupiah, which we always use to shop or transact online.
e. Bank Indonesia needs to monitor the circulation of Cryptocurrency because it has a monetary impact in Indonesia. This is very important to do because the circulation of cryptocurrency in the future cannot be separated from risks that can disrupt the smooth flow of the Indonesian economy, such as tax avoidance, money laundering media, and other things that should not happen.
Bibliography
https://id.wikipedia.org/wiki/Mata_uang_kripto#:~:text=9%20Bacaan%20tambahan-
,Sejarah,kriptografi%20yang%20disebut%20e%2Dcash.&text=Mata%20uang%20kripto%20 terdesentralis
asi%20pertama,kriptografi%2C%20sebagai%20skema%20pembuktian%20kerjanya https://www.cnbcindonesia.com/tech/20180115153325-37-1522/begini-risiko-mata-uang- kripto-yang- perlu-anda-ketahui
https://www.kompasiana.com/adrianwst/5a02950da4b06803cc703353/regulasi-dan-arah- kebijakan- pemerintah-terkait-peredaran-mata-uang-kripto-sebagai-alat-pembayaran-di- indonesia?page=all