China’s central bank has outlawed all transactions involving bitcoin and other virtual currencies, stepping up a campaign to block the use of unofficial digital money.
After the announcement, this Friday revealed the Guardian, the price of bitcoin fell more than 8%.
Chinese banks were banned from working with cryptocurrencies in 2013. In a notice issued this Friday, the People’s Bank of China indicated that bitcoin, ethereum and other digital currencies had disrupted the financial system and been used in money laundering and other crimes.
“Virtual currency transactions are illegal financial activities and strictly prohibited”, informed the bank on its official website.
Prosecutors of cryptocurrencies say their use allows for anonymity and flexibility, but Chinese regulators fear they could weaken the Communist Party’s control over the financial system and help hide criminal activity.
The People’s Bank of China is developing a electronic version of the yuan for transactions that can be tracked and controlled by Beijing.
Taísa Pagno //