Almost Rp. 1 Billion, BI Warns Bitcoin Investment

JAKARTA – The popularity of bitcoin has attracted many people to invest in cryptocurrencies. Bank Indonesia (BI) as the central bank of the country warned cryptocurrency investors, strictly prohibiting the use of cryptocurrencies as a means of buying and selling.

On the other hand, BI allows cryptocurrency investments but the payment system regulator urges investors to be more cautious.

"As the authority of payment systems, we still prohibit the use of cryptocurrencies as payments. But for investment, not with us (supervision). We have been alerting the risk because there is no underlying asset," said Erwin Haryono as Head of BI Communications Department in an event held online, Wednesday, April 14.

He also added that BI keeps an eye on cryptocurrency transactions because many people invest in digital money.

"But we're keeping an eye on it because everyone is doing it," Erwin said.

BI also emphasizes that investors pay attention to the two main points when investing, namely return and risk. This was conveyed by the Assistant Governor & Head of BI Payment System Policy Department, Filianingsih Hendarta.

"First return and second risk. Usually, the return is high, the risk is also high. So, depending on the risk appetite (ability to absorb risk) each (investor). How balancing return is generated with the risk (risk) that exists," said Filianingsih.

"So we have to mitigate that. If the investment is usually people also see the liquidity of the investment tool, how liquid. If needed, whether it can be quickly (disbursed), it also affects," added Filianingsih.

Currently, the market capitalization or market capitalization of cryptocurrencies has reached the figure of 2.02 trillion U.S. dollars. Most of it is donated by Bitcoin transactions, as compiled by Reuters.

The skyrocketing value of the market capital is due to the high enthusiasm of the public in investing in cryptocurrencies in addition to the rally in the value of cryptocurrencies.