Bitcoin has been readily embraced by the Indonesians as a reliable payment solution as well as for online transactions. They have continued to use the service despite knowing its inherent flaws. However, some known issues such as, price volatility and potential cyber attack on the software that takes care of the bitcoin transactions have raised serious concerns regarding the safety of money.
But in a country where the banking facilities are inadequate, people don’t have bank accounts and high costs of transferring money, many people who conveniently overlooked the flaws and embraced the currency with all its misgivings.
Indonesians amongst regular users of Bitcoins
People of Indonesia are using the bitcoin services to make payments online and are also using the digital currency to pay for the hotel rooms through many travel websites. They refrain from using the credit cards which is anyway owned by very small population as of now.
Contrary to the popular belief, bitcoin is a rather popular digital currency that is being used in Indonesia, says Oscar Darmawan, owner PT Bitcoin Indonesia that also owns the Bitcoin exchange bitcoin.co.id.
The bitcoin exchange of Indonesia was founded in 2013 and give bitcoin currency in exchange of Rupiah. Even though it trades significantly lower than Singapore’s iTBit, it still trades close to 200 bitcoins everyday. The site is growing fast and the number of registered users has grown seven times in the last one year.
This site offers comprehensive information about the latest value of crypto-currency, its highest and lowest trading price, market cap and trade volume. While selling bitcoins on this site is free, buying currency will levy a charge of 0.3% on the buyers.
Bitcoin’s growth in Indonesia
Singapore exchange, Quoine, is keeping a close watch on the growth of Indonesian e-commerce market and is hoping to make the best of the opportunities that this market presents.
The biggest challenge that Indonesia currently faces is lack of payment options that only include either bank transfers or cash on delivery.
Some sites can see a gap in the market in terms of payment solution and Bitcoin comes across as the most relevant answer. According to CEO of Quoine, the demand for Bitcoin exchange against rupiah is expected to grow in the coming times, for these very reasons.
As of now, the users in Indonesia are still reticent with the usage of bitcoins as compared to users in Singapore. However, since the launch of Quoine in Indonesia last year, it has become one of the largest markets in terms of registered users.