Indonesia shows signs of boosting Bitcoin development

While the majority of bitcoin startups are based in developed countries like the US and UK, there has been a steady growth in developing countries, particularly in India, which has seen signs of bitcoin being driven by the payments and remittance sectors.

According to a report in the Wall Street Journal, most locals have started using Bitcoin for online transactions, citing its low fees and speed. Bitcoin exchanges are ubiquitous, allowing investors to benefit from price changes in the electronic currency.

Bitcoin Development in Indonesia

"Most Indonesians use Bitcoin to pay for online services, such as web hosting. They can also book overseas hotels through travel websites with digital currencies instead of using credit cards, but this is only a small number of people," the Wall Street Journal article pointed out.

However, the article also points out that Indonesian banks do not recognize the legality of Bitcoin and have repeatedly warned the public about the risks of using digital currencies for business. Despite this, three major Bitcoin startups (Bitcoin.co.id, Blossom, and Quoine) have set up shop in the country to take advantage of the growing popularity of digital currencies.

Bitcoin Indonesia, one of the exchanges operating in the country, reported a growing customer base. The company saw a daily trading volume of 200 bitcoins, catering to around 56,000 customers. "Many people think that Bitcoin is unheard of in Indonesia, but in fact its popularity has skyrocketed," said Oscar Darmawan, CEO of Bitcoin Indonesia.

Many foreign bitcoin startups have also moved their offices to Indonesia to fill the gap in the country’s payment system. Bitcoin payments have proven to be a boon to the country’s tourism industry, as foreigners using digital currencies to transact often frequent Indonesia’s beaches.