The Indonesian government had imposed a ban on cryptocurrencies in 2017 as cryptocurrencies contradict with the largest Muslim-population country’s rule of law – the Shariah. The country has suffered in terms of digital adoption ever since. The COVID-19 pandemic pushed the country into a recession – halting its rampant economic growth. Now with citizens bearing the brunt of the economic stalemate, the authorities have adopted a neutral position on cryptocurrencies.
Kinesis is a monetary system which is based on 1:1 of physical gold and silver allocation. The firm has launched a Shariah-compliant version of its product in the country. The product PosGO has received approval from the federal government as well as the Sharia Supervisory Board. Being Shariah compliant, the product does not have any interest component. Moreover, PosGO is being launched in partnership with PT Pos – Indonesia’s government-backed postal service – which will give the product access to a much wider audience.
The gold-backed digital asset has also bagged partnerships with major exchanges in the country – ABX and PT Bullion. Per the CEO of Kinesis, PosGO will enable Indonesians to use gold as currency. The product will also pose as an alternative more efficient means of storing and exchanging wealth. The digital asset may also put back the country on the track of digital currency adoption.