Cryptocurrencies have seen significant increases in their value in recent time, as both adoption and the distrust in traditional systems has fueled their rise.
However, adoption levels remain uneven. While some nations have struggled to adopt cryptocurrencies, others seem fine with the assets. Indonesia can be classed with the latter category.
Crypto Bails Out a Failing Economy Yet Again
According to a new statistics report by social media platform Hootsuite, about 1 in 9 people now own crypto in Indonesia. The report explained that adoption levels have skyrocketed in recent times, with 11 people now owning the top digital assets in the 4th most populous country in the world.
The report also added that the Southeast Asian country is the sixth country in the world by crypto adoption, behind the Philippines, Brazil, South Africa, Thailand, and Nigeria. However, the gap between the top 7 seems rather close, as the level of adoption in the Philippines is just 6 percent higher than that of Indonesia.
Given that only 64 percent of Indonesia have access to the Internet, this is something.
Hootsuite explained that most Indonesians have flocked to crypto due to the rapid devaluation of the country’s official fiat currency, the Indonesian rupee. The Indonesian rupee currently holds the lowest value against the dollar since 1998, and all indications point to the fact that the asset’s value could crater even more – especially with the coronavirus dealing a massive blow to economies across the world.
Since 2019, the greenback has risen by 20 percent against the Indonesian rupee, and if things continue to worsen, then there is no telling how high this crypto adoption level could go.
A similar tale could be said about Nigeria. The country is set to face a major economic downturn as it has been caught in the midst of a crude oil price war between Russia and the United Arab Emirates. The Brent crude oil benchmark has fallen significantly over the past three weeks. With increasing calls for a devaluation of the Nigerian Naira, it is possible that more people in the country flock to crypto.
Bitcoin has so far displayed an impressive track record of helping people in countries with struggling economies. From Venezuela and Argentina to Lebanon and now Indonesia, the list continues to expand.
An Enabling Government Makes Things Easier
The Indonesian government also seems to be willingly opening its doors to crypto. Earlier this month, the country’s Commodity Futures Trading Regulatory Agency provided regulatory clearance for Zipmex – a crypto exchange focused on the Asia-Pacific region.
The regulatory body has also adopted an organized framework for exchanges looking to set up in the country. As of February, all exchanges operating in Indonesia will now have to register with it to offer trading services legally. The agency adds that all prospective applicants will need to show that they have secure risk management, transaction, and security systems.
The requirements were first initiated in 2019, and with such measures in place, more companies will be more confident in their ability to set up and bring crypto closer to Indonesians.