The cryptocurrency ecosystem in Indonesia is constantly expanding. Indonesia is expected to become the central leader of Southeast Asia’s crypto and blockchain ecosystem. Bank Indonesia has also announced the development of its digital currency.
This was stated by Professor Irena Vodenska, Ph. D., CFA, Director, Finance Programs and Chair, Administrative Sciences Department Metropolitan College, Boston University, at the 7th International Conference on Management in Emerging Markets (ICMEM) 2022, which was held virtually by the Bandung Institute of Technology (SBM ITB) Business School of Management on Wednesday (10/8/2022).
Furthermore, Irena stated that each country has its considerations when adopting cryptocurrencies. In America, the awareness of using cryptocurrency has been built since 2013. This is based on the understanding and treatment of bitcoin, which is treated as if it were a property. Meanwhile, in Australia, people have been adopting bitcoin and cryptocurrency transaction technology for over two years.
Switzerland is home to some of the world’s most successful blockchain technology companies. Like Silicon Valley in America, Switzerland can be referred to as a “CryptoValley.” Switzerland provides an excellent foundation for the expansion of the global cryptocurrency ecosystem. Starting with qualified infrastructure and world-class work talent. Furthermore, access to crypto-friendly government through the acceptance of cryptocurrency tax payments and a blockchain-based electoral system.
Japan is a pioneer in the incorporation of cryptocurrencies into the legal system. “Japan also has the most bitcoin traders, with total transactions reaching 40% of the world’s bitcoin transactions in Q4 of 2017,” Irena said.
China accepts similar technology with open arms. China now has a slew of blockchain-based startups. A banking consortium has stated that it will investigate blockchain technology. Finally, the government actively supports top cryptocurrencies and smart contract platforms.
Opportunities and Challenges
However, today’s cryptocurrency, according to Irena, is still a speculative investment asset. This refers to the current natural conditions of cryptocurrencies, which are still volatile. The currency’s rapid value volatility can cause uncertainty.
“The use of digital currency is expected to spread throughout the world for the common good and prosperity,” Irena said.
Essentially, the use of developing technology in the financial sector has the potential to achieve the goals of the sustainability principle, especially in terms of fostering and promoting projects based on sustainable development. Finally, issues such as climate change, waste accumulation, and other environmental and government issues can be properly addressed.
However, Irena believes digital currency will not completely replace the existing money in the coming years. It is not possible to compel people to use digital currency because it may result in injustice for many parties. Hence, digital and national currencies must be used simultaneously.