While most bitcoin startups are based in developed nations
such as the US or the UK, there has been steady growth in developing
countries as well. In particular, Indonesia has seen signs of bitcoin
gaining traction in the payments and money remittance sector.
A report released in the Wall Street Journal
revealed that majority of the locals started to use bitcoin online and
began to appreciate bitcoin’s low transaction fees and speed. Bitcoin
exchanges have also opened left and right, allowing investors to profit
from price changes in the cryptocurrency.
Bitcoin Developments in Indonesia
“Most Indonesians currently use bitcoin to pay for services online,
such as web hosting. They can also use the digital currency to book
hotel rooms through travel websites hosted overseas rather than use
credit cards, which only a small percentage of the population currently
own,” the WSJ article indicated.
However, the article also noted that the Bank of Indonesia currently
does not recognize bitcoin as legal tender, constantly warning the
public about risks associated with transacting using cryptocurrency.
Despite that, three big bitcoin startups (Bitcoin.co.id, Blossom, and Quoine) have been able to set up shop in the country to take advantage of the digital currency’s growing popularity.
Bitcoin Indonesia, which is one of the exchanges operating in the
country, reported growth in its client base. The company has seen a
trading volume of 200 bitcoin daily, catering to roughly 56,000
customers. “Many people think that Bitcoin is unheard of in Indonesia,
but the fact is its popularity is soaring now,” Bitcoin Indonesia CEO Oscar Darmawan said.
Some bitcoin startups from abroad have also relocated their offices
in Indonesia to fill in the gaps with the country’s poor payments
systems. Bitcoin payments have also proved to be beneficial for the
country’s strong tourism industry, as Indonesia’s beaches are often
frequented by foreigners who transact using cryptocurrency.
By Sarah Jenn
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