Research by Coinformant shows that Indonesia is the top “crypto hotspot” in the world for digital assets this year.
According to Indonesia’s National Religious Council, Muslim should not use cryptocurrency because the digital currency does not follow Sharia tenets. Bloomberg reported that the head of Indonesian Ulema Council Asrorun Niam Sholeh describes the online currency as having “elements of uncertainty, wagering, and harm,” which violates Islamic law principles.
Although Sholeh’s point does have broad implications and may influence the take up of cryptos by local institutions, it doesn’t mean cryptocurrency trading is officially banned in Indonesia. In Indonesia, the Ulema Council determines Sharia compliance, and it is frequently consulted by the finance ministry and central bank on Islamic finance issues.
Research by Coinformant shows that Indonesia has experienced a surge in cryptocurrency adoption this year, and is the world’s top crypto hotspot. Bank Indonesia has also been considering a central bank digital currency, although no decision has yet been made, Bloomberg reported.
According to Google data from 2021, online engagement increased by 1,772 percent in Indonesia as more people than ever searched for information about digital assets.
Cryptocurrencies have been on a bull run since October with both Bitcoin and Ethereum on an all-time high.