EL SALVADOR POLICY TO ESTABLISH BITCOIN AS A LEGITIMATE CURRENCY AND ANALYZING ITS FEASIBILITY

Abstract

In this study, the author will analyze El Salvador's policy towards Bitcoin. As El Salvador is the first country to make Bitcoin a legal currency, exist numerous advantage and disadvantage of the policy implemented by El Salvador. The World Bank and the International Monetary Fund also commented on Bitcoin as a legal currency. This research is utilize normative or doctrinal legal research because this research uses positive norms in the legal system. The technique of data collection is done by literature study. This study also discusses the implication of legitimizing Bitcoin as a legal currency in Indonesia. Therefore, this study will analyze the laws and regulations in Indonesia regarding Bitcoin. However, there are no regulations governing the use of Bitcoin as a legal currency in Indonesia. For this reason, Bank Indonesia as the authority in the payment system prohibits the public from using Bitcoin as a means of payment. However, under the latest BAPPEBTI provisions, Bitcoin can be used to trade on futures exchanges. This study will analyze whether El Salvador's policy in making Bitcoin a legal currency is an appropriate action and can be followed by Indonesia.