Players in Indonesia’s cryptocurrency industry are calling on the Indonesian Central Bank (BI) and the Financial Services Authority (OJK) to recognize stablecoins as legal means of payment, citing the country’s Currency Law only recognizes the rupiah as legal tender and therefore making use of cryptocurrencies for payments prohibited.

Stablecoins are a type of cryptocurrency backed by underlying assets such as fiat currencies or commodities. They are designed to bridge the volatility of popular tokens like Bitcoin (BTC) with the stability required for daily financial transactions. Among the most widely used stablecoins today is USD Coin (USDC), which is pegged 1:1 to the U.S. dollar.

Andrew Hidayat, shareholder of PT Indokripto Koin Semesta (COIN), believes Indonesia has strong potential to emerge as a global crypto hub. A key step, he said, is to push for stablecoins that can gain regional acceptance.

“This can only happen if regulators like OJK and BI support the recognition of stablecoins as legal tender in Indonesia. That way, these assets can be used for cross-border transactions,” Andrew told reporters in Tabanan, Bali, on Thursday, August 21, 2025.

He argued that using stablecoins could make international payments more efficient, eliminating reliance on the SWIFT system or conventional remittance channels.

Tokocrypto’s Chief Marketing Officer, Wan Iqbal, noted that discussions around stablecoins have been in place since 2016. He emphasized that stablecoins are not a new concept, but rather an extension of blockchain technology to simplify digital transactions.

“The only difference now is that we put it on the blockchain for transparency. The question is, how much rupiah actually backs the issuance of a stablecoin?” Iqbal said during the CFX Crypto Thought Leaders Opinion 2025: Driving Innovation in the Evolving Crypto Industry event in Bali, on Thursday, August 21, 2025.

While optimism remains high, Iqbal acknowledged significant challenges, particularly resistance to adopting a rupiah-backed stablecoin due to technological differences. Still, he argued that the benefits outweigh the drawbacks.

“Stablecoin becomes the real use case for the rupiah. It doesn’t replace the rupiah; instead, it expands its utility and unlocks greater potential,” he added.