To the Moon

Tokocrypto takes early steps to integrate blockchain and crypto technology into Indonesian society

- Marella Putri

For an industry gradually developing, 2021 has certainly been an eventful year for cryptocurrency enthusiasts in particular, and financial blockchain advocates generally. Cryptocurrencies are digital assets whose transactions are enabled and authenticated through the use of blockchain technology, a distributed ledger system spread across numerous computers that manage and record transactions. In addition to its added security, this enables global peer-to-peer transactions to be made without the use of the intermediaries found in traditional financial systems. According to CoinMarketCap, the total cryptocurrency market capitalization reached a record high of $2.68 trillion on 21 October, up from $705.58 billion in late December last year.

The pandemic, with its role in the acceleration of the transition to digital transactions generally, has also contributed to the growth of the interest in cryptocurrencies globally, including here in Indonesia. Although cryptocurrencies are not permitted as a means of payment, the government has allowed it to be traded legally as a commodity since 2019, regulated by the Commodity Futures Trading Commission (Bappebti). As of July 2021, the total number of local cryptocurrency investors had surpassed 7 million, nearly doubling from 2020, and far exceeding the stock exchange's 2.6 million. Meanwhile, daily trading volume more than doubled to Rp2.3 trillion from Rp180 billion a year ago. Nonetheless, it appears as though the volatile price and high risk, and thus reward, associated with cryptocurrencies has also contributed to their popularity.