China Bans Bitcoin Transactions Among Banks

Bitcoin has gained plenty of traction in news recently, and we even covered a story on how a man threw away his old hard drive without remembering that he had $7.5 million worth of Bitcoins inside. Well, this time around, we will touch on a government’s viewpoint on Bitcoin. China’s government has allegedly prevented banks and other financial institutions in their country from trading in Bitcoin. How do analysts view this move? This could be best described to be a restrained first step when it comes to regulating the digital currency which has gained plenty of value recently, not to mentioned soared in popularity even in China.

In a statement made by the central bank alongside another quartet of agencies, it mentioned that the computer-generated currency has yet to pose a threat to China’s financial system, but needless to say, it carries with it a fair amount of risk. The statement stopped short of preventing the use of Bitcoin by individuals. After this announcement was made, the value of Bitcoins on Chinese exchanges dropped.

Generally speaking, digital currency had always been volatile, and unless you have plenty of spare cash to burn just in case it all goes south, perhaps investing your money in something more predictable might be a better idea.

Edwin Kee
Categories: General
Tags: bitcoin, China