Bali To Crack Down On Using Bitcoin For Payments
Indonesian government has not allowed any alternative currencies as means of payment since 2011, but that is yet to stop locals from accepting payments in USD, Bitcoin, stablecoins, and other alternative assets.
- The Bali Provincial Government said it will crack down on foreign tourists using bitcoin and other digital assets as a means of payment in hotels, restaurants, tourism destinations, shopping centers, and other places.
"Foreign tourists who behave inappropriately, do activities that are not allowed in their visa permit, use crypto as a means of payment, and violate other provisions will be dealt with firmly," Bali Governor Wayan Koster said on Sunday."
- "Strict actions range from deportation, administrative sanctions, criminal penalties, closure of business premises, and other tough sanctions," Koster said.
- "Koster stated that the prohibition on the use of currencies other than rupiah as a means of payment in Indonesia refers to Law No. 7 of 2011 on Currency."
- "Based on Law No. 7 of 2011, if one uses other forms of currency other than rupiah, then they can get punished with imprisonment of one-year maximum and a maximum fine of Rp200 million (US$13,300)."
- Per Worlddata.info, during the observation period from 1960 to 2022, the average inflation rate in the country was 43.3% per year. For April 2023, the year-over-year inflation rate was 4.3%.
- The warning follows an investigative report about the use of bitcoin and stablecoins as a means of payment in the island, published on the country's newspaper Kompas on May 26, 2023.
- Bitcoin holding, trading, and mining remain unrestricted in the whole country.
- Indonesia Bitcoin Conference is set to take place in Bali on October 26-27, 2023.
