Bitcoin Takes a Tumble on Bali’s Beachfront
January 19, 2018 – 9:30 AM
Picture this: a sun‑baked island known for its temples and surf, suddenly buzzing with strangers trying to pay with a digital coin that hasn’t set foot on the island itself. Indonesian authorities are on the case, hunting for the good‑old‑fashioned cash that everyone’s been fooling around with.
Why the fuss?
When Bank Indonesia slapped a hard stop on crypto‑payments on December 7, the island of Bali became a “hot spot” for Bitcoin transactions—at least according to some lurkers on social media. A quick dig by the local police and the bank’s undercover squad revealed a mix of slick, crypto‑friendly businesses that had quietly died in the night.
What the undercover squad found
- Two cafés still taking Bitcoin, but only for extra‑large orders over 243,000 Rupiah (roughly 0.001 BTC).
- One such café took about 1½ hours to clear a single transaction, plus a hefty fee of 123,000 Rupiah, making the whole hoopla pretty inconvenient.
- In total, 44 shops—including car rentals, hotels, travel agencies, and even jewelers—once advertised that you could pay with Bitcoin, but had already pulled the plug.
The next steps
While the actual names of the businesses haven’t been released (they’re still waiting on the final word from Jakarta), the plan is clear:
- Issue a ban in line with the new regulation.
- Ask anyone still using Bitcoin to stop immediately.
- Team up with the Directorate of Special Crime Investigation to enforce that every transaction on the island uses cash or the local currency.
Who’s using Bitcoin on Bali?
Bali’s tourism mind‑map tells us the long‑tailed links between the island and a bunch of foreign visitors. Many of those wanderers—especially those from abroad—dash straight for the digital coin, seeing it as a convenient “money‑in‑the‑air” tool.
Bank Indonesia’s take on virtual currency
The central bank is quite vocal about the risks:
- “We’re dealing with a low‑responsibility, high‑risk environment. No official authority guards these coins, and they’re built on speculation.”
- “Cryptocurrencies can pair up with money‑laundering schemes and even terrorism funding, and they can mess up the financial system’s stability.”
- “Because we’re not regulating trades at the moment, we’re still looking into the problem.”
What’s happening globally?
Around the world, regulators are scrambling to get on top of crypto’s risk game. Bitcoin, the crown‑jewel of the mint, surged a staggering 1,700 % last year, causing a roller‑coaster of emotions for traders worldwide. Now, in South Korea, hints of a ban on domestic crypto exchanges have sent the prices to a steep decline.
Look at Bitcoin.co.id, Indonesia’s own online crypto exchange, reporting that BTC is now trading at 162.70 million Rupiah—roughly $12,247 per coin—after dropping a quarter of its value over a single week.
In short, the island of Bali has taken a break from the digital craze, and everyone’s just hoping that the fresh sea breeze keeps everyone in line… and in cash.
