Indonesia’s Central Bank Showcases Sustained Polarity
One of the defining characteristics of the crypto-market is the remarkable polarity showcased by investors and traders alike. Many experienced names from Wall Street and other established exchange markets warn against the volatility of cryptocurrencies and the lack of tangible utility in the short-term. More progressive thinkers are looking to the future and see the upside of easy-to-use technology that removes unnecessary third parties. On an individual level, it may not matter. Superpowers China and Russia have already come down against cryptocurrency trading/activity and Indonesia’s central bank is now just another domino falling in place.
Bank Indonesia (BI) is on the record for speaking out against cryptocurrencies in the past. Like many other nations and institutions, the central bank simply distinguishes that these coins are largely not recognized as a legal medium of exchange. On a local level, Indonesia is nowhere near accepting tokens as valid payment in the standard economy. While common spread, it has become increasingly acceptable (led by Japan) to accept Bitcoin as valid payment in regular business.
The most recent headline stemming from BI is tied more to individual risk, though, as opposed to the national implications. Spokesman Agusman released a statement late last week, “The ownership of virtual currencies is high risk and prone to speculation because there is no authority who takes responsibility, there is no official administrator and there is no underlying asset to be the basis for the price.”
Concerns about the uncertain environment for investors partners partially with the increased raiding of Korean exchanges from the past couple of weeks. Bank Indonesia placed an effective ban on financial technology companies using crypto for transactions earlier this month, though exchanges for investors are still allowed. South Korea’s central bank banned employees from trading cryptocurrencies last week and continue to tighten regulations on the crypto-market.
Investors continue to trudge through an environment lacking global recognition that is heavily affected by reactionary trading. Some of the more promising outlooks for cryptocurrencies are based in east Asia, predominantly Japan and Korea. With regulations tightening and the less-than-trail blazer mentality of the Japanese financial sector, ceilings appear to be lowering.
Long-term prospects in the geographic regions will require more widespread acceptance of cryptocurrency of at least a possibility in the future. England’s Central Bank has bought into the creation of their own token, Bank Indonesia may have a change of hear with new winds in the trading environment.
Recent falls in the crypto-market can be partially tied to the gloomy positioning of financial institutions on the Asian front. More sour news from Indonesia is yet another catalyst for a sharp, downward trajectory with no trough in site. Investors who failed to take a short position will be digging in for the long-haul if they are to recoup recent losses.