Indonesia is poised to open up its digital currency ecosystem to new users, as it aims to make money by using it as a currency to finance local businesses.
According to The Jakarta Post, the government is set to allow users to create their own cryptocurrencies, including “cryptocurrency” in a bid to diversify its economy.
The move comes after Indonesia’s central bank announced in June that it was considering allowing the digital currency bitcoin, a peer-to-peer electronic cash system.
The bank, in a statement at the time, said bitcoin could “be a reliable, effective and competitive currency for Indonesia”.
“It could be used for buying, selling, remittances, and even as a payment method for other digital payments like payments to small businesses and citizens,” the bank said.
Bitcoin was the subject of a recent crackdown by the central bank.
The country has a long history of using cash and other forms of currency as a form of payment.
In March, the country became the first in Southeast Asia to officially regulate digital currencies, allowing banks and payment service providers to accept the digital currencies.
The announcement was met with enthusiasm, and the move to allow digital currencies has already helped many businesses to become self-sufficient.
“It is a very interesting step that the government took and they will now allow digital currency,” Bitcoin Indonesia CEO Jokman Ananda said.
“We will soon see a lot more merchants accepting bitcoin and digital currency.
It is an interesting step in the right direction.”
He also welcomed the introduction of the digital money into the country’s economic infrastructure, as well as the government’s support of digital currency companies.
“The digital currency will provide an opportunity to get rid of the paper currency, which will also lead to economic growth,” Ananda told CNBC.
“They [the government] are doing the right thing in bringing digital currency into the economy.
They are also providing more services for the users.”
The government is also expected to introduce a central bank bill to allow banks to issue digital currencies and bitcoin.
It will allow the government to set up a centralised digital currency account and exchange rates.
The government also said that bitcoin will be allowed to be used as a method of payment for online shopping.
Bitcoin Indonesia, which has more than 300,000 registered users, will be used by the government as an alternative currency to buy goods and services from businesses.
The digital money, which is backed by the value of the Indonesian currency, will also be used to fund projects, according to Ananda.
In June, the Indonesian central bank allowed digital currency to be accepted as a financial asset.