There is a real technology revolution in Indonesia as more and more people continue embracing bitcoin and using it to purchase products and services. Today, the digital currency Bitcoin is exchanged in more than 10, 000 stores across Indonesia. The project has been pioneered by Bitcoin Indonesia and will be operated through the exchange market bitcoin.co.id in a partnership with a payment processing firm iPaymu. The move gives all Indonesians the opportunity to buy Bitcoins at over 10,000 storesbitcoin.co.id stores.
Oscar Darmawan who founded Bitcoin Indonesia, stated that with the easy access to Bitcoin through numerous stores makes it possible for many individuals without bank accounts in Indonesia to use Bitcoin. It’s estimated that over 200 Million people will have access to Bitcoin as a result of this project.
The report by World Bank’s Financial Inclusion Data of 2011 revealed that only 20% of Indonesians aged 15 years and over have an account with at least one of the formal financial institution. Considering the fact that Indonesia is the fourth world most populated nation with over 250 million people, the section of this society that has no bank account is significant and bitcoin would be a better payment solution.
A system for those without Bank accounts
This bitcoin system will enable those with no formal bank accounts to have an account which will serve the purpose of a normal bank account. Users are only expected to create an account on the Bitcoin.co.id website and then add money using a top–up function via Indomaret. Thereafter, users get a code which they can present to any Indomaret store together with the cash so that their bitcoin account gets credited with bitcoins equivalent to the top-up.
Those used to the electronic bank transfer may find this cumbersome although it’s similar to walking into a bitcoin ATM and withdrawing money. The main issue with this bitcoin system is that one has to use specific stores and must access the internet to enjoy the bitcoin exchange platform.
The Rise of Bitcoin in Indonesia
Being the fourth most populous nation, any innovation can easily pick especially if it appeals to a segment of the population. In December last year, Bitcoin.co.id entered the market and has since grown in popularity and usage among the Indonesians.
When Indonesia’s first bitcoin exchange began operations, the number of bitcoin transactions averaged at five each day but by May this year, the number of transactions had gone up to an average of 30 transactions daily and the number continues to rise. This is a clear indication that there is significant movement in this market even though the daily transaction numbers are still low, but there’s good progressing.
The general public in Indonesia continues to accept Bitcoin and this has been aided by local players’ advocacy, led by Darmawan. Darmawan has met regulatory officials over the issue of bitcoin and that has positively contributed to the growth.
The Indonesian Bitcoin market has been critical in promoting a bitcoin campaign in Bali in a project dubbed Bali-based BitIslandS. This project works by accepting Bitcoin in this region and so far success has been reported. This project also strives to enable tourists visiting Bali to use bitcoin in settling all their bills.