Bank of China Warns About Bitcoin

The Chinese central bank has warned the country’s financial institutions not to trade in bitcoin, saying that the digital currency doesn’t have “real meaning” and lacks legal protections.

However, no explicit risk to China’s financial system was identified by the bank, and it reiterated that individual citizens were free to use bitcoin provided they were aware that they were taking the risk on themselves.

The bank also identified money laundering and other illegal uses of the currency as areas of concern.

Bitcoin has recently achieved a measure of popularity in China, with FiatLeak and other bitcoin trading information sites showing large inflows of the currency through Chinese exchanges.

China Telecom, the largest mobile phone provider in the country, launched a promotion allowing a Samsung phone to be bought with bitcoins, and Baidu, the Chinese Google, is accepting payments for its firewall service in the currency.

via theguardian.com

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza