The Challenge in Application of Cryptocurrency as Commodity in Indonesia

Abstract

Cryptocurrency is a variety of digital currencies and is an asset used as a medium of exchange. This currency uses cryptography and how to make it safe. The system used will create and analyze algorithms and protocols. This prevents no information being changed or interrupted while connected by a third party. Context of digital money, no underlying and unpublished authority. Underlying is the asset used as the basis of the transaction. Based on the international standard of The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), a product is so called if gharar is heavy, exists in non-social business transactions, and on selling objects rather than complementary. virtual money is not a currency. For, if looking at the definition, the currency must be accepted by the public and recognized authority. Digital money is accepted in some circles so it is not a currency. Then the sharf provision (payment) does not apply there because it is not a currency. The purpose of this research is to see the potential of Cryptocurrency whether it can be applied into Digital Asset form only, or even in the future will be an Effect or Comudity. This study uses the Literature study method based on several scientific journals and the theoretical basis related to cryptocurrency and the potential of virtual transactions. The results of this study indicate that the cryptocurrency can be categorized as a virtual product commodity in Indonesia that already has Legal Basis and Legislative regulation. It is hoped that research in this regard will have a positive impact on the development of cryptocurrency in Indonesia, so that later regulation can be made about the cryptocurrency transaction model in Indonesia that has legal force and clear regulation to be applied in the cryptocurrency management.