E-Money and virtual currencies


The U.S state of Colorado introduced the digital token act which will permit the transactions of digital tokens. Digital token act define the term ‘digital token’ in the sense of blockchain technology. According to this legislation:A “digital token” is defined as a digital unit that is:

  • created by deploying computer code to a blockchain network and/or in response to verification or collection of transactions relating to a digital ledger or blockchain;

  • recorded in a digital ledger or database that is chronological, consensus-based, decentralized, and mathematically verified in nature; and

  • capable of being traded or transferred between persons without an intermediary or custodian of value.

The legislations also points out that: ‘digital token” must primarily have a “consumptive purpose” at the time of issuance or within 180 days after sale, and not be offered or sold for speculative or investment purposes’. The act will become law and is set to get in motion from 29th August 2019..

By the new report from the New York Times, companies FaceBook and Telegram, are step closer to the launching of its own cryptocurrency that will be used on Telegram, Facebook and his related service WhatsApp chat platform. Facebook is hoping to bring in-app payment to the reality for its massive user base. Proposed cryptocurrency would be used for online e-markets and bypass the third-party payment processors used for online transactions.

If successful, Facebook will become the online retailer with the biggest consumer outreach. Messaging platform Telegram is known for imposing strong encryption to his service and focus on privacy of its users. Telegram, raised USD 1,6 Billion in its Initial Coin Offering earlier in 2018. Initial Coin Offering (ICO) is a process of funding from public used by online tech companies. Company Facebook pushed the research in blockchain development center, and announced the possible creation of its own cryptocurrency in the late 2018.

Indonesian financial institutions has recognised crypto-assets as a commodities that can be traded on futures market. The Commodity Futures Trading Regulatory Agency, part of the Ministry of Trade, sets the new set of rules for trading crypto-assets on futures exchanges. Under the new regulation cryptocurrency futures exchanges needs to be registered, and approved from the central financial watchdog. Exchanges would need to meet requirements of pay-up capital in worth of $105 million, (1.5 trillion rupiah) and maintain the closing capital balance up to USD $85 million (800 billion rupiah). Trading services would also need to comply with the full anti money-laundering (AML) and combating the financing of terrorism (CFT) framework.

Regulatory agency issued the full document detailing the requirements [link on Bahasa language]. This new set of legislations moved the country toward more open and regulated approach with crypto-asset regulation.

An American multinational investment bank J.P. Morgan Chase & Co issued a statement on 14 February that they created their digital coin named JPM Coin. Bank’s digital coin is based on a blockchain technology and will serve the purpose of instantaneous transfer of payments between institutional accounts. JPM coin will represent fiat value of USD $1. Unlike other cryptocurrencies this coin will redeemable in fiat currency held by J.P. Morgan in a 1:1 ratio. J.P Morgan investment bank recognized the great potential of blockchain technology for financial institutions pointing out the future possible reducing clients settlement risks and enabling instant value transfer.

Mr. Umar Farooq, head of Digital Treasury Services and Blockchain for the J.P. Morgan told in an interview that: ‘JP Morgan is using blockchain because of the improvements in speeds and security that the technology offers’. Read the full statement from J. P. Morgan on the release of the JPM coin here

According to the local news outlets, Iran is involved in a multilateral talks regarding the future payment system that would support cryptocurrency. Iran is negotiating with the representatives from eight countries (Switzerland, South Africa, France, United Kingdom, Russia, Austria, Germany and Bosnia, in Tehran late in January. By the reports Iran is discussing the way for payments in cryptocurrency in order to circumvent the international sanctions imposed to Iran by the United States.

Back in April 2018, Iran has announced its plans for creation of national cryptocurrency, having on mind recent amendment of financial regulation around the crypto-assets, official Tehran might be closer to launching central bank-backed cryptocurrency.

By recent reports, Russian government is preparing to move the significant amount of resources to the virtual currencies. Allegedly, Russia is planning the regulation addressing the use of cryptocurrencies and other crypto assets. Russian economics close to Kremlin stated for the press that Russia even considers to use bitcoin as a reserve currency by investing the significant amount of resources.




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