In Jakarta, the Indonesia Blockchain Hub was opened. This is regarded as a center for the sharing of knowledge about emerging technology both globally and domestically. Significantly, the move comes a few months after the country has announced that it would treat the cryptocurrency as a commodity and wanted to encourage it rather than resorting to banning it. In a nutshell, the country has opted to legalize anything in respect of the virtual currency setting the tone for the rest to follow.
The Indonesia Blockchain Hub was launched in alliance with the Indonesia Blockchain Association (ABI), Indonesia Chamber of Commerce (KADIN), agritech startup, HARA, and BEKRAF. In the southeast Asian Economy, the ABI has credited for encouraging the emerging technology, bitcoinnews.com reported. The agency is doing it through technological inventiveness, advancement, utilization, and understanding in respect of the fourth industrial revolution. The country is witnessing investments from both the public and private sectors in blockchain technology applications.
Southeast Asia’s biggest economy is keen to plug issues of application of data and storage in a number of sectors within the country. For instance, the country’s banks are showing enough interest in the distributed ledger technology. This was proved when a survey was carried last year. The survey result pointed out that 80 percent of financial professions expect emerging technology to impact markets in the future. Bank Mandiri’s director of digital banking and technology, Rico Ustahavia Frans, disclosed that it was looking at the technology.
The second-biggest bank in Indonesia in terms of assets indicated that it was waiting for the regulators to formulate guidelines for financial institutions and banks to apply blockchain technology. The recent launch of the hub is nothing but a feather in the country’s cap. It also signals its intention of becoming a key player in adopting technology. Co-founder of the hub and HARA CEO, Regi Wahyu, expects blockchain to be integrated with wider areas of the society.
He said, “We believe that data transparency as enabled by blockchain technology will help the bottom of the societal pyramid to improve their welfare… [which] will lead to an improvement in business and economic performance. Based on HARA’s experience… there remain challenges in explaining the socio-economic impact of blockchain on business, regulators, and the society in general.”
Need For a Platform
The CEO indicated the need for a platform in Indonesia that could extend blockchain knowledge in the community, which is one of the objectives of the center. IBA and the Indonesia Blockchain Hub are one of the organizations that are established to extend their support for spreading the blockchain awareness within the country and share information. Another focus area is the co-working space.
A few months ago in June, Indonesia has given permission to all digital coin exchanges in the country to go ahead with trading and treated them as commodity futures. For its part, the Commodity Futures Trading Supervisory Agency disclosed that they would list digital coins as commodities enabling to trade in all the virtual currency exchanges.