Indonesia Becomes the Latest Country to Adopt Crypto
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Indonesia Becomes the Latest Country to Adopt Crypto
International adoption has been a core component of blockchain technology since its inception first began in 2009 with the bitcoin network. Due to the technical complexity of cryptocurrency, understanding how to operate a crypto wallet and where to spend funds has been a struggle for many that are interested to get started. Although this is not a bad thing, it means that bringing in new users to the blockchain won’t happen overnight.
Fortunately, Indonesia - one of the newest countries interested in exploring crypto assets - understands the need to approach the blockchain one step at a time.
With the country’s new interest in a crypto exchange being developed, citizens won’t be adversely harmed by extreme volatility, risks of scams, and simple misuse of funds that can disappear forever when used incorrectly
A new Exchange in Indonesia
First announced in December 2021, the bourse being developed in Indonesia will allow citizens to begin taking part in blockchain transactions more easily with buying and selling of different crypto assets.
While people in Indonesia already have access to the blockchain through any ordinary internet connection, this is an important step for the country. It will allow for an easier method of converting crypto assets into local fiat which can be difficult for many that have to rely on untrustworthy 3rd party exchanges.
Growing the local crypto economy
Similar to El Salvador, one of the results of this new bourse will be the effect that it has on the local economy which will soon include the blockchain industry. By moving more liquidity into web3 projects, the Indonesian people will begin to receive a new way of acquiring investment funding and remittance which can help grow their local businesses.
A bonus to South East Asia
The potential outside of just Indonesia with this new bourse is exciting as well. Singapore and Malaysia are both highly active in the blockchain industry and can help create significant partnerships with Indonesia following their plans to open the exchange later this year.
In fact, many blockchain businesses have already moved into Indonesia and are prepared for this new level of oversight from the Indonesian government. While Indonesia does not label cryptocurrency as a form of payment, they still allow certain companies to operate, such as Tokocrypto, one of the country’s primary crypto exchanges.
The CEO of Tokocrypto, Pang Xue Kai, said in a recent event to reporters that “The industry will grow, [and] we’ll start seeing more local projects.”
Pushback from nearby countries
The decision isn’t being celebrated by everyone though. The Philippines, Indonesia’s nearby neighbor, has acted in the opposite direction by pausing the establishment of crypto service providers by stopping the application process for the next 3 years.
While the move may seem drastic, the decision came at a time when the nation was suffering heavily from the international economic downturn from massive inflation and a crash in crypto prices. Although the move by The Philippines seems drastic, there is some sense that it will help the citizens protect their savings from immediate loss in this highly volatile market.
Read more about countries in crypto here.
