Bitcoin use under scrutiny in Bali
Indonesian authorities are investigating the use of bitcoin in Bali, amid warnings by the central bank over the risks posed by virtual currencies. BI found out from some postings on social media that Bali appeared to have become a haven for bitcoin transactions, adding that BI officials and police went undercover at the end of 2017 to investigate scores of businesses in Bali advertising online that offered bitcoin payment services. The team found two cafes still using bitcoin as a means of payment, but 44 businesses including car rental outlets, hotels, travel companies and jewelry stores, previously offering the service, had now stopped. BI will impose heavy sanctions on any payment system providers that facilitate financial transactions in cryptocurrencies. BI fears that such virtual currencies have been forming bubbles due to the lack of control by responsible authorities and the absence of underlying asset backing, which can affect financial stability and cause social harm.