Despite the substantial number of Indonesian internet users owning crypto assets, their popularity and value have declined in 2022. According to the Commodity Futures Trading Regulatory Agency (CoFTRA), registered crypto asset customers increased to 16.55 million, but the transaction value plummeted by 65.48% to IDR 296.66 trillion. The agency anticipates a prolonged "crypto winter" in 2023 based on surveys indicating a decrease in investment interest.
CoFTRA Reports Surge in Indonesian Crypto Asset Ownership, But Transactions Plummet Amid 'Crypto Winter'
Jakarta, Indonesia - The Commodity Futures Trading Regulatory Agency (CoFTRA) has unveiled a significant surge in internet users holding crypto assets in Indonesia, with an estimated 16.4 to 18.4 percent of the population now owning digital currencies. However, despite the growing popularity, the value of crypto assets has taken a sharp downturn throughout 2022.
Acting Head of CoFTRA, Didid Noordiatmoko, revealed that the number of registered crypto asset customers in Indonesia has witnessed a remarkable increase, rising from 11.2 million in 2021 to an impressive 16.55 million in 2022. "However, it's important to note that the value of crypto asset transactions has experienced a significant decline throughout 2022," Noordiatmoko stated at a press conference on Wednesday, December 4.
Delving into the statistics, CoFTRA's data indicates that the total value of crypto asset transactions in Indonesia reached IDR 296.66 trillion from January to November 2022. This figure, as Noordiatmoko highlighted, represents a substantial 65.48 percent decrease compared to the IDR 859.4 trillion recorded in 2021.
Noordiatmoko further elaborated on CoFTRA's observations, emphasizing that the current market conditions align with the term "crypto winter," a phenomenon characterized by a prolonged downturn in the crypto asset industry. This conclusion is corroborated by the findings of a Statista Global Consumer Survey, which revealed that while 18 percent of Americans have invested in crypto assets, only 15 percent intend to continue their investments.
Furthermore, Noordiatmoko noted that the popularity of crypto asset ownership in the United States witnessed a rise from 8 percent to 11 percent in 2020. However, based on the survey results, he expressed concerns that the crypto asset market is currently experiencing an "extraordinary winter period."
Despite the decline in crypto asset popularity, Noordiatmoko expressed optimism that the market may rebound in the upcoming year, albeit at a gradual pace. "The crypto winter is not over yet. It appears that we are still approaching the lowest point," he explained. "While the situation may not worsen in 2023, it seems unlikely that a complete recovery will occur immediately, based on the survey results."
In conclusion, CoFTRA's findings highlight the growing adoption of crypto assets in Indonesia alongside the challenges posed by the ongoing "crypto winter." While the value of transactions has witnessed a significant decline, the potential for future recovery remains a topic of keen interest among industry experts and investors alike.
