DEVELOPMENT OF BLOCKCHAIN IN INDONESIAN

DEVELOPMENT OF BLOCKCHAIN IN INDONESIAN

Executive Director, Head of Policy and Supervision Department of Bank Indonesian (BI) Eni Panggabean said the agency is exploring the possibility of developing bitcoin drive technology in Indonesian.

Bitcoin drive technology is known as blockchain. The form is a collection of notebooks called blocks. Each block is protected by complex codes.

"The central bank is looking at (blockchain technology) carefully, but there are opportunities, but the risk is also great, now in the stage of stock-taking, or see what can be done with the technology," Eni said when met after the Digital World Financial Transformation seminar , in Jakarta, Thursday (9/11/2017).

He added that various world financial institutions such as the International Monetary Fund (IMF) and the Central Bank of China (PBOC) have begun to look at the development of blockchain technology.

Nevertheless, the two institutions have still not decided to adopt blockchain technology because it is still waiting and see the direction of the next development.

"We also have fintech office, they do the study and deepening first because of this (blockchain) is new, internally we update and make the study, we also regularly discuss and cooperate with OJK," he said.

Just to be known, although often affiliated with bitcoin, blockchain is a completely different thing. Bitcoin itself is one of the products produced using blockchain technology.

BI has a clear attitude about bitcoin or cryptocurrency. The Indonesiann central bank stated that it does not recognize financial transactions using bitcoin because of its untracked and vulnerable nature of abuse.

In addition, BI is also working on regulations on financial technology. Later there will be a regulatory sandbox, a kind of device for financial technology can be tested and viewed its influence to the community, before it is actually implemented.

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