China Bans Financial Companies From Bitcoin Transactions
Source: Bloomberg
Chinas central bank barred financial institutions from handling Bitcoin transactions, moving to regulate the virtual currency after an 89-fold jump in its value sparked a surge of investor interest in the country.
Bitcoin plunged more than 20 percent to below $1,000 on the BitStamp Internet exchange after the Peoples Bank of China said it isnt a currency with real meaning and doesnt have the same legal status. The public is free to participate in Internet transactions provided they take on the risk themselves, it said.
The ban reflects concern about the risk the digital currency may pose to Chinas capital controls and financial stability after a surge in trading this year made the country the worlds biggest trader of Bitcoin, according to exchange operator BTC China. Bitcoins price jumped more than ninefold in the past two months alone, prompting former Federal Reserve Chairman Alan Greenspan to call it a bubble.
The concern is that it interferes with normal monetary policy operation, said Hao Hong, head of China research at Bocom International Holdings Co. in Hong Kong. It represents an unofficial leakage to the current monetary system and trades globally. It is difficult to regulate and could be used for money laundering. I think the central bank is right to make this move.
Read more: http://mobile.bloomberg.com/news/2013-12-05/china-s-pboc-bans-financial-companies-from-bitcoin-transactions.html
DonCoquixote
(13,616 posts)This is because China has a LOT of hackers, many of whom are very used to running businesses on the side, such as the "gold farmers" that wreck online gaming.
derby378
(30,252 posts)Other than illegal firearms, ketmaine, and kiddy-porn videos, what can you purchase with Bitcoins?
Can anyone help me with this?
jmowreader
(50,557 posts)There are some people on DU who are playing in the Bitcoin market as an investment vehicle.
But as far as tangible goods go? Yeah, pretty much anything sold in BTC is illegal.
derby378
(30,252 posts)Also, I just realized that I misspelled "ketamine." Do you have a blackboard and chalk so I can write the word out a thousand times?
jmowreader
(50,557 posts)Because not only can you buy ketamine with BTC, you can get smack, toot, quackers, uppers, downers, all-arounders...
Electric Monk
(13,869 posts)Includes various electronics, clothing, guitars, food, baby products, e-cigs, jewelery, sports equipment, and more.
https://www.spendbitcoins.com/places/