Indonesians Turn to Cryptocurrency as Fiat Currency Devalues

11% of Indonesians own cryptocurrency as fiat currency devalues. It is an impressive figure, considering that only 64% of Indonesians have access to the internet.

24 March, 2020 | AtoZ Markets – Adopting cryptocurrency in any country is made much easier when local governments and central banks approve its use. Besides, adoption becomes even more transparent when a territory publishes legislation on its use, as this opens up possibilities for businesses and facilitates the use of it.

1 in 9 Indonesians Now Own Cryptocurrency

Indonesia is the fourth most populous country in the world, 50% of the 265 million people are under 30 years old. One in nine citizens has cryptocurrency, which shows a rapidly increasing adoption rate.

About 11% of all Indonesians own some form of cryptocurrency, according to a recent Hootsuite report, which cites the GlobalWebIndex. The 11% figure is impressive, considering that only 64% of Indonesians have access to the internet from any device.

Indonesia is the sixth country to adopt crypto, only behind the Philippines, Brazil, South Africa, Thailand and Nigeria. The Philippines is in the lead with 17% of the population having some crypto.

Indonesians prefer to hold crypto as the national currency. Because, the Indonesian rupee (IDR), is gradually devaluing. It has fallen against the US dollar to its lowest level since 1998 and may soon reach a new record. Since the start of the year, the USD/IDR has jumped about 20%. Most of the losses were incurred this month in the context of the COVID-19 pandemic. USD/IDR is trading near 16,400 at the press time.

Today, Indonesia confirmed 107 new cases of COVID-19 or coronavirus, the largest daily increase to date in this Southeast Asian country, bringing the total number of cases to 686. Seven people died of the disease, bringing the total to 55. But, 30 people had recovered from the virus.

Read More: China Drop Salaries for Blockchain Developers by 37%

Is Data Accurate?

The report discussed on Twitter, although not everyone agrees with the numbers. Some locals said it is doubtful that 11% of Indonesians have cryptocurrency.

It might take the 2017 bull run into account to calculate the 11%. In reality, there are so many fake accounts that signed up for the biggest crypto exchange in 2017 to receive a drop.

The same report says that around 7% of the world’s population owns at least a few bitcoins or altcoins. This means that more than 546 million people worldwide have cryptocurrency. This figure is much higher than other estimates. For example, Coinbase CEO Brian Armstrong estimates that there should be around 50 million crypto users worldwide.

A recent report released by Statista shows that there were almost 45 million wallet users in the last quarter of 2019. Besides, more than 21 million Bitcoin wallets are containing at least $ 1, according to data from BitInfoCharts. However, Indonesia is indeed at the forefront of the adoption of the cryptocurrency.

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