Indonesian blockchain startup Pundi X has begun rolling out its new cryptocurrency point-of-sales (POS) devices, despite the country’s central bank having an anti-crypto stance, expecting that the central bank will discard this policy within three years.
A POS is an electronic device that is used for processing card or electronic payments at sales outlets. The notion behind Pindi X’s devices is to make digital currencies an accepted medium of daily exchange, allowing people to use crypto to buy basic necessities like food, wherever merchants have installed these devices.
While crypto is currently not yet recognized as a valid payment instrument in Indonesia, Pundi X’s chief legal counsel David Ben Kay says that the deployment of the new POS terminals can be completed regardless of regulatory requirements. He said this is because the terminal’s crypto function is not the default, and it supports compliant payment methods.
Kay explained that:
“The functionality for dealing in cryptocurrency is not automatic, it has to be activated when it is legally permissible in any jurisdiction that the POS is being deployed by the retail store owners.”
He also suggested that it is only a matter of time before authorities in Asia finally soften their negative stand towards crypto. The firm decided to make its debut in Indonesia because of the large population and largely cash-based economy.
Pundi X has reportedly received several pre-orders for the POS devices from Indonesia, South Korea, Japan, Singapore, and Switzerland. The company plans to install up to 100,000 POS machines to build its blockchain-based payment network in the Southeast Asian region by 2021. This would enable the 80 percent of the Indonesian population that do not have access to banking services to start purchasing and selling digital currencies.
Earlier today, the Indonesian Trade Ministry’s Futures Exchange Supervisory Board (Bappebti) signed a decree making cryptocurrency a legally tradeable commodity on the stock exchange. Dharma Yoga, a Bappebti official, remarked that the Indonesian government will soon issue legislation on the regulation of currency exchange companies, taxation, and anti-money laundering rules and stopping terrorism financing.