The debate about bitcoin status-as currency or commodity-interesting followed. The rules imposed and accompanying their use will determine the future of crypto products.
The Commodity Futures Trading Regulatory Agency (Bappebti) has designated digital currencies (cryptocurrencies), such as Bitcoin and Ethereum, to become commodities that can be traded on futures exchanges.
Bitcoin (BTC) Profile Overview
Bitcoin is the world’s premier digital currency and is known as cryptocurrency. This can be compared if, in conventional currency, bitcoin is US Dollar. This is because bitcoin is the main currency in cryptocurrency so that BTC is used to exchange conventional money into various other types of cryptocurrency.
This determination follows a decision taken by Bappebti after going through studies and meetings with various agencies, institutions, and ministries in determining digital money as a commodity.
Cryptocurrency is Defined as a Commodity
Our meeting involved BI [Bank Indonesia], OJK [Financial Services Authority] to the Ministry of Trade, and other stakeholders for up to three meetings. So that in accordance with the amendments to Law Number 10 of 2011 concerning Commodity Futures Trading, crypto is designated as a commodity. There are at least three reasons why the cryptocurrency is regulated and allowed and entered as a commodity futures exchange.
Volatile Digital Currency Cryptocurrency
First, cryptocurrency is a product that is not intervened by the government, including through the provision of subsidies. Then the second digital currency is a volatile futures product. The demand is very big, yes. Because it is neither a means of payment nor security, there is no need for permission from BI and OJK so that the mandate is fully given to Bappebti.
Bappebti Design Cryptocurrency Products
Currently, Bappebti will continue to design trading procedures for cryptocurrency products that will be included in futures exchange products. In the future, what kind of trading system will be and will involve all stakeholders for coordination. For example, the payment mechanism, what kind of KYC (know your customer), to what kind of e-trading.
It cannot be denied that despite its advantages and disadvantages, bitcoin is a good innovation in the digital era. Even blockchain technology developed by digital currency is currently developing in major world banks, including in Indonesia. The uniqueness of bitcoin sometimes makes people wonder what is the proper use and group of instruments for Bitcoin.