Indonesia to develop blockchain exchange using Kinesis tech

The Bitcoin logo is seen on a pillow on display at the Consensus 2018 blockchain technology conference in New York City, New York, U.S., May 16, 2018. REUTERS

KUALA LUMPUR: Jakarta Futures Exchange (JFX) is teaming up with Kinesis Money and Allocated Bullion Exchange (ABX) to develop an Indonesian based and regulated blockchain exchange.

JFX, which is Indonesia's futures and derivatives exchange group, had on Tuesday expanded the MoU with  Kinesis Money and ABX to develop a blockchain exchange using Kinesis technology.

In a joint statement issued on Tuesday, the companies said Kinesis and ABX have developed an evolutionary monetary system using real assets (gold and silver) as the basis for digital currencies. 

These currencies are transacted on the Kinesis Blockchain Exchange, which is part of the Stellar Network which is able to handle more than 3000 transactions per second. 

The system is also integrated with mobile banking and fiat currency exchange services.

ABX, the world's leading electronic institutional exchange for physical precious metals, has been working with JFX to expand gold investment opportunities in Indonesia.

Meanwhile, JFX, which is an exchange for gold futures contracts, is now launching a spot physical Sharia Gold Contract, in partnership with ABX. It was given the go-ahead by Indonesian regulators and the Indonesian National Shariah Board. 

“A blockchain exchange version of gold-based currencies, through collaboration with Kinesis and ABX, is a natural extension of the JFX and Indonesian government vision.

“The expanded partnership between JFX, Kinesis and ABX envisions an Indonesian blockchain exchange based on the technical advances of the Kinesis Blockchain Exchange,” it said.

This partnership is part of JFX's plan to create blockchain-based solutions in addition to existing infrastructure. This will allow investors alternatives and benefit from an increased ease, speed and security of transactions. 

JFX president director Stephanus Paulus Lumintang said the benefits of distributed ledge technology, or blockchain would unlock tremendous amounts of value for Indonesia and Indonesian people. 

"Blockchain regulation in Indonesia is currently in progress, and it is quite an important, yet difficult task. However, JFX is ready to be a blockchain exchange company in Indonesia, in compliance with any legal and regulatory requirements."

"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," he said.

The CEO of Kinesis and ABX, Thomas Coughlin said their blockchain network 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."

Kinesis is a monetary system which is based on the traditionally stable commodities, gold and silver. 
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