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Bank Indonesian Reveals the Difference Between Libra Crypto With Bitcoin

Author on Saturday, November 02, 2019 | No comments

Libra vs Bitcoin.

Bank Indonesian Reveals the Difference Between Libra Crypto With Bitcoin


Bank Indonesia (BI) assesses Libra, a virtual currency (cryptocurrency) owned by Facebook Inc. different from other virtual currencies, for example, Bitcoin. Because, Libra has an asset guarantor, while Bitcoin does not.

Head of BI Macroprudential Policy Department, Juda Agung, revealed that the study of Mark Zuckerberg's currency was still being carried out by the national central bank. However, so far he said Libra was quite different from Bitcoin.

Libra has a guarantor of high-value assets, such as gold and US Treasury. In addition, there are associations that oversee in Geneva, Switzerland.

"So it is quite different between Libra and Bitcoin. We will see whether this is more like a foreign currency, like the US dollar for example," Juda said in the Thamrin region, Jakarta, Wednesday (6/26).

While Bitcoin is considered quite risky because it is not clear the guarantor (underlying) and laden with speculation elements. In addition, the limited amount also makes it easy to fluctuate prices.

Despite having a guarantor of assets, but Juda does not necessarily call Libra potentially safer than Bitcoin and other virtual currencies. Again he stressed that BI still needed time to study Libra.

"This has not yet come out, just announced (announced) the first quarter of next year will only be used," he said.

On the other hand, he again stressed that the public is not tempted to use Libra before there is an attitude from BI. Because, according to Law Number 7 of 2011 concerning Currency, the legal currency used in the country is the only rupiah.

"In essence, the legal payment instrument is the rupiah. So, outside of the rupiah, other payment instruments are not legal in Indonesia," he stressed.

Previously, Facebook announced the emergence of a crypto money provider company, Calibra. This financial service allows users to transact on cryptocurrency trading networks.

Meanwhile, Libra plans to apply globally and is supported by blockchain technology. "Libra will be available on Messenger and WhatsApp, we estimate Libra will launch in 2020," wrote a Facebook spokeswoman.

However, Chairman of the US Financial Services Committee Maxine Waters asked Facebook to stop developing Libra services. In addition, he also asked company executives to testify before the US congress.

Facebook's move to make crypto money is seen as adding to global concerns about the meaning of digital currency and data security. "Facebook has data on billions of people and has repeatedly ignored the protection and use of this data," Waters said.

In fact, the planned publication of Libra also invited anxiety on the European Continent. One of them was from the French Minister of Finance Bruno Le Maire. He said that virtual money will never replace what the government has set. He insisted again Facebook's plan to demand regulatory guarantees.

"If Facebook wants to make instruments for transactions, why not? But there is no question that this will be a sovereign currency. It cannot and should not be a sovereign currency, with all the attributes of a currency," said Le Maire.

According to him, the aspect of sovereignty must remain in the hands of the government and not private companies. There is a fear that there is a personal interest behind this project.

He stressed there needed to be a limitation so that the transaction instrument would not even finance terrorist activities or other illegal activities.

On the other hand, British central bank Governor Mark Carney said Facebook new currency must be resistant to supervision and so as not to be used for money laundering.

Resource: CNN
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