Indonesia's day of reckoning
Another day in crypto, another government banning Bitcoin
Today, a new set of regulations for Bitcoin and other cryptocurrencies is set to be released by the Bank of Indonesia Governor, Agus Martowardojo. It will likely introduce the complete ban of Bitcoin in an effort to try preserve the sovereign rupiah.
A definite blow to the growing crypto industry in Indonesia, but an even greater blow to the nearly two thirds of people who remain unbanked in the country.
One of the enabling features of crypto-currency is exactly giving those without access to banking, a means to transact and manage their own money. This is why crypto-currencies have a inverse relationship to the economic and financial health of a nation, inflationary or even hyper-inflationary currencies make it's holders progressively poorer.
To counteract this, deflationary assets such as Gold and now Bitcoin have become more popular. Not only can you hedge against continued devaluation of your native currency, you also take control of your own wealth and property, cutting out the need for a pricey debt leveraged custodian dragging the value of your money to oblivion whilst lowering the average quality of life.
Enslavement to the Government
As mentioned before, crypto assets generally respond positively to these kinds of events, you only have to look at what happened to the price of Bitcoin as China moved towards banning it.
Steemit has a very large Indonesian community who recognise the empowerment of being able to manage their own money as well as working for a decentralised and autonomous corporation. For many, it is the first time they have been able to earn and save money without having to hide fiat cash in shoe boxes under the bed. It is also the first time they have been able to participate in the global albeit limited STEEM economy, accessing digital goods and services simply by virtue of being holders of STEEM.
By banning crypto-currencies, the government is forcing it's people to become enslaved to the domestic banking system. Being forced to use the rupiah means that should the currency inflate too quickly, it's holders must continue working (and much harder at that) to preserve their relative 'wealth'. It is the classic method governments use to keeping their people in line and always working.
The end of Indonesian Steemit community?
Growth on Steemit has come largely from countries such as Indonesia because the opportunity cost of contributing on the platform is a net positive alpha. It is far easier to onboard people from countries who appreciate a couple of dollars in exchange for hard work, than it is for people in developed countries who snarl at rewards any less than triple digits.
Members of the Indonesian community will feel repressed in their native country, but more than ever, they feel empowered with opportunity from Steemit and crypto as a whole.
We need to continue to support developing countries because aside from appreciating the money more, their voices are suppressed the most by their governments.
It is amazing to think that so many people are controlled by so few. This is exactly why we need cryptocurrencies and blockchain technology. People need to realize that big government is not the answer and they are not acting in our best interests. BTC can't be banned.
Yes that is one outcome that many anarchists believe is much less than ideal. I don't think taking away government is the answer, so much as changing their MO, aligning closer with the wishes of the people.
I am not saying take government away. There are plenty of people that are dependent on the government and need their assistance. I am just not a fan of big government. I think government needs to be limited in power and spending of money.
Why would the government want to ban a very standard and stress-free way of going about in daily transactions.... I support you!!
Unless they blacklist specific sites, in this case Steemit, people will still be able to continue using the platform(s). If the government decides to so, tor browser or a vpn could fix the problem easily. It might turn off some people out of fear for the consequences by their government, but where's a will there is a way, and this blockchain technology is their way to independency and freedom (for that matter the whole world). IMHO this thing ain't gonna be pushed away by any regulation, restriction, or fear mongering tactics. Blockchain is gonna change the world! ^.^
The problem is that the entire ecosystem of a nation prohibits you from ever owning crypto. It will likely proliferate under P2P trading instead of central point exchanges much like how Localbitcoins continues to have very high volume in China.
P2P trading is just what we need. Ignoring this new technology now by banning it will only be a bigger blow in the face for the government. The more you force something upon someone, the more that someone is feeling the need to push back (if not fallen into fear).
While it's a horrible thing that Indonesia has banned cryptocurrencies, there is a beauty to all of this in the thought that.... the only ideas worth standing up against. The only ideas worth banning or rejecting.... are the ideas that can actually cause some real damn change.
So true. Actually I see a lot of different things changing in the world already, but blockchain technology is such a fundamental one. Which will help other suppressed technologies and ideas being implemented into the world.
sad news. but it's almost impossible to ban bitcoins, they can only close the local exchanges. meanwhile, is it fair to say that this act of government also reveals that bitcoin now has considerable influence there in Indonesia?
Bill Gates once said that Bitcoin and crypto currencies in general had the power to steer developing nations out of poverty. Still not quite reality and probably quite some time away from becoming reality.
Indonesia's trading volume is muted, but that is also because of the relative wealth (or lack of). You will find that the proportion of Indonesian's who are unbanked and dabble in crypto is proportionately very high but remains overall very low at around 1% of the total population.
The Governor of Bank Indonesia, Agus Martowardojo, has given warnings several times to crack down on Bitcoin users and the cryptocurrency. However, like what the actions of Bank Indonesia are, it is never mentioned clearly.
Prohibiting the use of cryptocurrency I think is just like banning the internet in a country. What the government can do to stop it. At the commemoration of the Governor of Bank Indonesia appearing in the media, Steem, Steem Dollar, and various other cryptocurrency transactions continue to increase.
Bank Indonesia should not be allergic to cryptocurrency, but it needs to establish a special division to investigate this phenomenon and remind its citizens to be careful because cryptocurrency values are very volatile.
Mas, Bank Indonesia cuma mengatur btc bukan sebagai alat pembayaran, tapi untuk jual belinya masih boleh. (Indonesian central bank only regulate banned btc for payment tool, but for sell and buy it, still allowed.
That's right...
Yang saya pahami juga demikian. Jadi kalo bayar kopi pake sbd juga dianggap tidak sah, kecuali mereka ga tau. Hehe
Hahaha..betul..betul..betul.
lebih baik begitu masbro :D ..... kesempatan dagang sabun masih luas :D .....
boo
hiss
go btc ;-p
The Indonesian currency rupiah has too many zeros.
They should perhaps remove two or three zeros at the end of their notes.
Can you buy anything with 1 rupiah in Jakarta nowadays?
1 rupiah is just 0.007 cents, less than 1 satoshi!
hyper-inflation at it's finest.
work hard while the sun shines.
A little surprised!!
I am Indonesian and I don't think we have to stop what we are doing with blockchain. Blockchain is actually the relization of the fundament philosophy of he Indonesian Republic - Pancasila, and it is not against the will of Indonesian people. Sooner or later, Indonesia will accept this new monetary system if we all hand in hand together to proof that Blockchain is a solution to have better world and future as what we all really wish for.
that is the spirit. I'm very glad that you are defiant because after-all, you are only protecting your right to property.
This is a terrible mistake for crypto currency is here to stay. Whether local government officials like it or not they will have to find a way to work with the new Order or become completely irrelevant. Steemians from Indonesia: The best is yet to come.