Indonesia is Trying to Ban Bitcoin After Value Hits $11,000

Indonesian bitcoin owners are now being encouraged to take their profits off their cryptocurrency soon as the government is set to impose a national ban on bitcoin and all forms of cryptocurrency next year.

Bitcoin’s value has recently skyrocketed beyond the $10,000 mark, hitting an all-time high of $11,395 before dropping to low as $9,000 in less than 24 hours on Thursday, Reuters reports.

According to Pikiran Raykat (via Coconuts) Bank Indonesia Governor Agus Martowardojo announced that the country’s central bank will prohibit anyone from facilitating cryptocurrency transactions by 2018 in an effort to protect the rupiah as the legal tender in the country.

Image via Coindesk

“We are also preventing the potential for arbitration, unhealthy business practices, and the control of businesses by parties untouchable by laws in Indonesia that could who could damage the structure of industries here,” Agus was quoted as saying.

Agus pointed out the risks of cryptocurrencies being used for money laundering and even funding terrorism.

Based on 2015 figures, $30,000 to $50,000 worth of bitcoin are traded daily in Indonesia, according to TechInAsia. 

Globally, interest in bitcoin has continued to rise as it gains popularity in the mainstream investment world.

Google searches for “bitcoin” have even exceeded searches for “Trump” for the first time this week, despite the United States president being featured in the mainstream news and social media recently.

Bitcoin’s continued rise in popularity has prompted prominent investors to warn that the primary digital currency may have reached bubble territory. On Wednesday, the Bank of England deputy governor advised investors to “do their homework” before investing in any cryptocurrency.

In an earlier report, Vietnam also announced an impending ban on cryptocurrencies by 2018.

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