Indonesia is the latest country that looks set to benefit from blockchain technology. Its Jakarta Futures Exchange is partnering with two Australian platforms to develop a more secure and efficient financial solution.
It’s no secret that Australia is fully embracing blockchain technology. From assisting in the creation of the world’s first completely blockchain-based bond to using the technology to upgrade its Australian Securities Exchange (ASX) systems, the message is clear: blockchain is giving Vegemite a run for its money in the popularity department.
Now, according to Tech Wire Asia, it seems as if Indonesia will be benefiting from the expertise of some Australian crypto experts. The Asian country’s leading futures and derivatives group, Jakarta Futures Exchange (JFX), will soon be able to offer a virtual solution with the assistance of blockchain technology and Australian-based Kinesis Money and Allocated Bullion Exchange (ABX). The goal is to develop an alternative option to what is currently and traditionally being offered.
Indonesia Sees a Future in Blockchain
The President of the JFX, Stephanus Paulus Lumintang, explained the impact that the new platform will have:
It’s increasingly become clear to us that the benefits of distributed ledger technology or ‘blockchain’ will unlock tremendous amounts of value for Indonesia and Indonesian people.
He went to touch on what he hopes the new collaboration will result in:
Our future partnership with Kinesis and ABX will enable us to not only tap into these advantages but to create a secure and transparent blockchain network that provides a credible alternative to existing systems of exchange.
Kinesis and ABX have worked together to create a cryptocurrency that is backed by gold and silver. The platform makes use of its Kinesis Blockchain Exchange, which is a part of the Stellar network. It can handle over 300 transactions per second and shows versatility and convenience by being compatible with mobile banking platforms as well as fiat currency exchange services.
A Positive Sign for Regulations?
The team has also done their homework when it comes to providing services in the country. By acquiring a permit from both officials and the National Shariah Board, this new partnership will be able to launch a spot physical Sharia Gold Contract. This is essential in the country as most of its population identifies as being Muslim.
The CEO of Kinesis and ABX, Thomas Coughlin, explained what he hopes to achieve through the partnership:
The bespoke blockchain network that we developed creates a complete monetary system which enables real, physical assets to be transacted and exchanged digitally, at speed and at low cost. We believe that the integration of physical precious metals and distributed ledger technology offers tremendous value to the Indonesian market, with its dual interest in gold and in blockchain. We look forward to continuing our partnership with JFX to bring this to fruition.
While, as in many countries, crypto regulation is still unclear in Indonesia, this does seem like a step in the right direction. Lumintang even added that this new collaboration “is a natural extension of the JFX and Indonesian government vision”. Perhaps this bodes well for the regulatory future of the industry in the country.