Abstract:At less than a decade old, Bitcoin and other virtual currencies have had a major societal impact, and proven to be a unique payment systems challenge for law enforcement, financial regulatory authorities worldwide, and the investment community. Rapid introduction and diffusion of technological changes throughout society, such as the blockchain that serves as Bitcoin's crypto-foundation, continue to exceed the ability of law and regulation to keep pace.
“…In fact what is happening in Indonesia, cryptocurrency cannot be used in Indonesia to be a substitute for an existing currency, conventional currency is the currency money that is integrated with Bank Indonesia so that the circulation or circulation is still can be monitored temporarily which becomes risky in the use of cryptocurrencies in the payment tool in Indonesia, namely its circulation which is not visible because it is not centralized or deep This is called a peer-to-peer network which is used decentralized without servers or central server (Mandjee, 2014;Shovkhalov & Idrisov, 2021;Trautman, 2018) .…”
This article aims to analyze the use of cryptocurrency as a substitute for conventional currency in Indonesia. The article is written using normative legal research methods with conceptual and legislative approaches. The results of this research indicate that cryptocurrency can be considered as a solution for a different level of payment system; however, the demand for this type of cryptocurrency is not proportionate to its supply. As a result, cryptocurrency is unlikely to become an everyday payment tool but may serve as a more specific means of payment or exchange at a certain level. Currently, cryptocurrency can only function as an investment tool that is bought and sold, making it challenging when directly compared to traditional currency for daily payment purposes. The opportunity for cryptocurrency to replace conventional currency in Indonesia is very small. This is due to the unstable (highly fluctuating) value of cryptocurrency and the absence of an authority determining its value.
“…In fact what is happening in Indonesia, cryptocurrency cannot be used in Indonesia to be a substitute for an existing currency, conventional currency is the currency money that is integrated with Bank Indonesia so that the circulation or circulation is still can be monitored temporarily which becomes risky in the use of cryptocurrencies in the payment tool in Indonesia, namely its circulation which is not visible because it is not centralized or deep This is called a peer-to-peer network which is used decentralized without servers or central server (Mandjee, 2014;Shovkhalov & Idrisov, 2021;Trautman, 2018) .…”
This article aims to analyze the use of cryptocurrency as a substitute for conventional currency in Indonesia. The article is written using normative legal research methods with conceptual and legislative approaches. The results of this research indicate that cryptocurrency can be considered as a solution for a different level of payment system; however, the demand for this type of cryptocurrency is not proportionate to its supply. As a result, cryptocurrency is unlikely to become an everyday payment tool but may serve as a more specific means of payment or exchange at a certain level. Currently, cryptocurrency can only function as an investment tool that is bought and sold, making it challenging when directly compared to traditional currency for daily payment purposes. The opportunity for cryptocurrency to replace conventional currency in Indonesia is very small. This is due to the unstable (highly fluctuating) value of cryptocurrency and the absence of an authority determining its value.
“…Several authors have worked on exploring issues associated with the usage of cryptocurrencies in relation to regulations and regulatory frameworks. Trautman (2018) analyses the greater comprehension of the constant struggle of the law and regulations to keep pace with the speed of technological advancements. Seng and Yew (2015) explored the economics of the financial reporting of Bitcoin, applied accounting principles to the understanding of Bitcoin valuation, and strives to add value to the thinking process which may help accounting bodies issue an interpretation of Bitcoin reporting.…”
Existing literature has examined a plethora of factors that can affect the effectiveness, performance or nature of fiscal policy in an economy. In this paper we build on the fundamental tenets of micro-economic models to examine the potential ways cryptocurrencies can affect the effectiveness of a country’s fiscal policy. Our finding is that under the assumptions of an absence of uncertainties, perfectly competitive markets, household utility maximization, and usage of public money and cryptocurrency, the government purchases as well as the ability of the government to raise funds by issuing bonds and by taxation is decreasing in new investments in cryptocurrencies but increasing in the income earned from cryptocurrencies. We go further to discuss the factors that account for the sustained ability of cryptocurrencies to weaken the state’s fiscal-policy capabilities and possible ways the effects of cryptocurrencies on the state’s fiscal integrity can be mitigated.
“…Virtual currency is a type of payment instrument that is created and stored electronically (Dibrova, 2016). In other words, virtual currency refers to a type of exchange intermediary that acts as a currency, but is created by computer programs and is controlled (Trautman, 2018).…”
Section: Is It An Investment Instrument or An Alternative Payment Met...mentioning
The main purpose of this study is to investigate risk and return, in 5 crypto currencies (BTC, ETH, BNB, XRP, DOGE) that have the highest transaction volume and market capitalization. Needless to say, there are now a large number of digital currencies on the market that some coins have a futuristic and practical whitepaper that shows they have the potential to grow day by day in the future, which has made them very significant elements for investment. An extensive empirical study was performed using ten consecutive years of crypto currency data by using the closing and return prices on a monthly basis between 2010 and 2020. Those were examined and tested using various such as single root test, co-integration test, and using regression analyses. Our findings cast doubt on explanations that the behavior of crypto currencies in the future of block chain technology is similar to stocks. At the same time, the returns of crypto currency can be predicted by two factors specific to its marketsmomentum and investors' attention.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.