Observers Agree With MUI Fatwa On Haram Crypto Trading: Cryptocurrency Founders Are Pure Capitalists

JAKARTA - Crypto assets are now increasingly being traded. However, recently the Indonesian Ulema Council (MUI) officially forbids the use of cryptocurrencies or crypto money as currency and is not legal to trade. The decision was taken in the Ijtima Ulama Forum.

Director of Ekuator Swarna Investama Hans Kwee admitted that he agreed with MUI. Not without reason, he said this started from concerns about crypto money, namely ideology. According to Hans, the founders of cryptocurrency are actually adherents of pure capitalist ideology.

Hans explained that the origin of crypto actually came from people who had the same views as the economic classics initiated by Adam Smith. Where, they are of the view that the state is allowed to take care of state affairs, starting from security, infrastructure, and others, while the people are left free to take care of their own wealth. Starting from that ideology the founders of crypto developed.

Furthermore, Hans explained that they also felt angry because of the central bank's discretion in printing money, causing its value to fall. In the end, they chose to make their own currency which could not be regulated by any party, including the government.

Hans considers this dangerous because there will be many problems that arise. First, if money is controlled directly by the public, then the government, in this case, the central bank, cannot calculate how much is in circulation.

Next, how to calculate inflation and tame demand. This will not happen if the currency is controlled by the community.

Second, said Hans, from the security aspect, the government will find it difficult to know that the money can be used for illegal transactions. Such as drug sales, bribery, terrorism, gambling, and other crimes.

"Departing from all of that, that cryptocurrency cannot be used as a means of payment. So we support what was conveyed by MUI that this should not be used as a means of payment. From the MUI side, of course, this asset does not have an underlying. So he has difficulty become a means of payment," he told VOI, Friday, November 12.

Hans said that the basis for the movement of cryptocurrencies is only demand and supply. It is different with gold. Hans explained that gold is not completely based on demand and supply. According to him, if people buy gold bars, in the future they can be used as jewelry.

"You can make earrings, necklaces, and other things. There is demand and supply in these commodities but there are benefits from these commodities. We say silver, tin, nickel all have demand and supply but there are benefits. Now cryptocurrency is only limited to demand and supply," he explained.

According to Hans, crypto actually has benefits, namely as a means of payment. However, in Indonesia, this cannot be done. Because, the only legal tender in Indonesia is the rupiah currency.

"But you can't use crypto as a means of payment," he said.

Regarding whether crypto-assets should be rejected or not, Hans said this is the government's choice. According to him, when people invest a lot in these assets, the local choice becomes something that is difficult to do because people will do it secretly.

However, said Hans, if the government does not prohibit the trading of crypto assets in Indonesia, it must regulate strict regulations for this cryptocurrency.

"That's why the government chose okay, we make regulations. Talking about regulations must be strict on the basis of regulating the potential that can harm the community," he said.