THE IMPACT OF CRYPTOCURRENCY ON THE WORLD ECONOMY

Abstract

The development of the world economy, especially in Indonesia, cannot be separated from the element of information technology. The development of information technology will be related to all fields including the financial sector. Cryptocurrency or often referred to as virtual/digital currency is the result of the development of financial technology. Digital currency is starting to be widely used as a means of payment on the internet. The purpose of this currency is to provide convenience and security in payments. With the Blockchain technology in it, it makes transaction costs cheaper. However, the Government in this case Bank Indonesia prohibits transactions using digital/virtual money because it has a dangerous impact on the Financial System, Monetary Stability and Payment System in Indonesia. This study explains the impact of Cryptocurrency on the Indonesian Economy and the government's attitude towards the technology in it. In terms of the technology offered, cryptocurrency is a development of financial technology that allows paper money to be replaced with digital money in financial transactions in the future. It is hoped that the government can study the technology contained in cryptocurrency in more depth so that the policies made later do not prohibit the technology contained in cryptocurrency and provide knowledge to the public to better understand cryptocurrency.