JAKARTA - The Institute for Development of Economics and Finance (INDEF) said crypto-assets can be a potential investment alternative.
"With the diversification of investment products, crypto assets are able to become a potential investment alternative because the market share is only eight percent," said INDEF Center of Innovation and Digital Economy researcher, Nur Komaria during an online discussion, reported by Antara, Friday, June 25.
INDEF believes crypto-assets have the potential to grow even more. Based on data from Fintech News Singapore in 2020, crypto market share ranks third-largest after peer-to-peer landing with 50 percent and followed by payment with 23 percent.
In addition, crypto assets are able to make transactions quickly, transparently, and efficiently without any space restrictions and can be accessed worldwide.
"With the widespread use of cryptocurrencies, supply and demand is increasing, so the price is increasing," said Nur Komaria.
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INDEF also assesses that crypto-assets can be a legitimate transaction tool, especially for several digital platforms such as e-commerce and fintech and helping MSMEs.
Although crypto assets have several opportunities, INDEF also highlights a number of threats that can be posed by the investment instruments that investors are interested in. Such as data security regulations that are not yet comprehensive and the potential for scamming and phishing.
"Then price fluctuations are very volatile so it really depends on supply and demand. Then the risk of crypto prices can be very high and very low," he explained.
Therefore INDEF recommends that the government accelerate the formation of crypto exchanges that will make crypto money legal for trading. Including making regulations from the side of Bank Indonesia and the Financial Services Authority.
In Indonesia, crypto assets are only permitted as investment instruments in accordance with the Regulation of the Minister of Trade Number 99 of 2018 and the Regulation of the Commodity Futures Trading Supervisory Agency Number 5 of 2019.
Bank Indonesia prohibits crypto assets as an official medium of exchange because in accordance with Article 23 B of the 1945 Constitution jo. Article 1 number 1 and number 2, Article 2 paragraph 1 and Article 21 paragraph 1 of the Currency Law, Rupiah is the only legal tender in the Unitary State of the Republic of Indonesia and every transaction that has the purpose of payment made within the territory of the Republic of Indonesia must use Rupiah.
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