Cryptocurrency and State Regulation

in LeoFinance4 months ago


Hello dear friends !!
Through this blockchain, I and maybe you are familiar with crypto. Through this blockchain we get a lot of information about the development of crypto. I feel grateful and grateful for all the posting material that enlightens us regarding our understanding of crypto.
We still remember how as a child we only knew fiat currency. For example, I who live in Indonesia only know the rupiah currency as a means of payment. Likewise, those of you who live in another country may only use one single currency as a means of payment. Then the development became more modern, with various payment methods.
Transfer, debit, and credit methods using electronic currency make it easier for humans to make transactions. It is more developed than just using conventional money with fiat currency. in further developments the Cashless Society program was further developed. This program is carried out through the application of electronic money in various sectors and the latest is its comprehensive application at toll gates, minimarkets and various sectors. Even now there are also startup companies in the field of Financial Technology that act as virtual wallets and also as a means of payment with the basic concept of electronic money. Now many millennial generations have taken advantage of this technology.

The basis of electronic currency is still the currency in each country. As we know, government regulations make each country oblige a certain currency, as in Indonesia there is a provision in a government regulation which states that only the rupiah currency is used as a legal tender. There is a possibility that the government may not be able to legalize a payment instrument other than the rupiah currency, because there is no certainty and legal umbrella for issuing currencies other than rupiah or other fiat currencies.

In the process, these payment methods are not able to satisfy humans because of the various limitations they have. Then came a new payment method that was able to attract public attention because it was fast, safe, and confidential. This payment method is a form of virtual payment that uses computer code. We then know it as Crypto Currency or Crypto currency.

Electronic Currency is different from the Cryptocurrency scheme. However, cryptocurrencies can still be converted into fiat currency. The most recent challenge is that withdrawals and disbursements between Cryptocurrency issuers and Conventional Financial Institutions have not been connected by law. The Indonesian government has not yet provided guidance on crypto money management. This is related to government regulations governing the single currency in Indonesia.
Maybe countries that have taken a stand by allowing or even accepting cryptocurrency as a means of payment will certainly be more developed. Indonesia can be said to be a country that is still unstable in deciding its attitude. Through a press release from Bank Indonesia dated February 6, 2014 which states that Virtual Currency (Crypto Currency) is known as a legal currency, however in this case Bank Indonesia does not . In this case, if we discuss Cryptocurrency from a legal perspective, Cryptocurrency raises some challenges with the applicable Law. Fortunately, the government did not prohibit it but asked for careful permission from crypto money users due to fluctuations and fraud.

Cryptocurrency, which stands for virtual currency scheme, has a scheme based on its form, including:

From the community to all aspects

As we know there are three stages of development of a cryptocurrency scheme starting from a one-way closed currency scheme, developing into a one-way currency scheme and finally a two-way scheme.

1. Virtual Closed Currency Scheme

In its early development, virtual currencies were dependent on only one community. This type of currency is only in a particular community or system and cannot be used outside that community or system. The most obvious example we can see at the beginning is currency in a game be it on a computer or on a cell phone, for example in a game of Point Blank, Counter Strike or others. In this game, the user can only buy items using the currency made by the game developer, therefore the user must pay a certain amount of money to be exchanged for the currency contained in the game and can then be spent on certain items.

2. One Way Virtual Currency Scheme

This type of currency is obtained by exchanging the official currency of Rupiah into virtual currency which can then be used to buy other virtual goods or services but cannot be withdrawn.

3. Two-Way Virtual Currency Scheme

At this stage the user can sell and buy virtual currency according to the prevailing exchange rates. This currency is similar to any type of currency that can enter. This third stage then develops with a certain algorithm to become Cryptocurrency or Cryptocurrency. With a cryptographic code that is formed in such a way that it can be stored on a computer device, then it can be transferred like an electronic mail and can be used as a means of payment. Cryptocurrencies can be protected by cryptographic algorithms to avoid counterfeiting so that their users will feel safe.

Then there are also laws and regulations, in particular the rules regarding the Operation of Electronic Systems and Transactions. In order to determine the direction of future government policies regarding Cryptocurrencies in Indonesia, it is important to determine where Cryptocurrencies are positioned so that the legal consequences and legal liability of implementing this system are important.
The existing regulation states that an Electronic System is sending electronic devices and procedures that serve to prepare, collect, process, manage, store, display, announce, transmit, or conduct electronic information.
Furthermore, in the operation of an electronic system that manages electronic information and / or electronic documents that can be transferred, electronic information and / or electronic documents must be unique and explain their control and ownership.
The government, in this case as the holder of financial authority, only provides policies so that people are more careful in using crypto. The government does not prohibit but also cannot legalize crypto as a legal means of payment.
I personally believe that the government will continue to side with the benefits of cryptocurrencies for the people. And I believe in a time and there are policies that support cryptocurrency.
this could be an opportunity for us in this blockchain to continue to be active and get coins even though they are still of low value. I am sure that one day we will be able to break high numbers and we already have a lot of cryptos.

Thank you for reading my post. I hope you enjoy it.