Authorities in Indonesia have launched an investigation over the use of bitcoin on the holiday island of Bali. The central bank has warned that digital currencies pose a potential risk to the wider economy; Indonesia is Southeast Asia\'s largest economy, and last year banned the use of cryptocurrencies within payment systems. 

Bali, it seems, has become something of a haven for transactions of bitcoin and other digital currencies. Indonesian officials launched the investigation after social media postings suggested that bitcoin was still being heavily used on the island. 

Officials from both the police and the central bank went undercover last year, to investigate a large number of Bali businesses which had been offering bitcoin payment services through online marketing. Two cafes were found to still be accepting bitcoin as payment for services, whilst 44 businesses across a wide range of industries had recently stopped.

Locals stated that bitcoin was being offered as accepted payment towards the many foreigners who either live on, or visit the island. Bali is a tourist hotspot and also has a large expat community. Bank Indonesia is worried that the unregulated cryptocurrencies could cause a wider problem to the national economy if left to flourish on the island.