The Role of Blockchain in Strengthening Indonesia’s Economic Stability

Abstract

The development of technology introduces people to the topic of the Internet of Things (IoT), artificial intelligence (AI), big data, and the blockchain. The blockchain became popular in 2009 and growing rapidly because the use of the Blockchain tends to be profitable in the business and government systems. This study aims to identify and analyze regulations regarding blockchain in Indonesia. This study compares blockchain regulation in Indonesia with countries in the Americas, Europe, and Asia. Based on regulatory comparisons with several countries, blockchain regulation in Indonesia is still weak. The blockchain, which stores several smart contracts, needs to be further regulated in the legislation. The use of blockchain that knows no boundaries of time and territory is the government's task in making several regulations, including regulations regarding taxation, protection of personal data, and prevention of money laundering and terrorist financing. One way that can be done is to fulfill the recommendations from the FATF which has previously regulated how blockchain works. In addition to the government, the active role of the community, especially crypto asset trading actors is needed to build a healthy ecosystem and bring prosperity to society and the country.