Bitcoin Price Crashes as China Outlaws Bitcoin for Financial Institutions
The price of bitcoin has climbed back up to $1,012, according to the Coindesk BPI. The price of bitcoin fell by $300 on popular exchange Mt. Gox this morning after China's central bank warned financial institutions to steer clear of the digital currency. According to the People's Bank of China, it doesn't consider bitcoin a threat to China's financial system, but it does believe the digital currency carries significant risks. "The concern is that it interferes with normal monetary policy operation," Hao Hong, head of China research at Bocom International Holdings Co. in Hong Kong, told....
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Have you noticed a trend lately? It seems like every number of days, some "news" comes from China regarding a ban of some sort. If not outright, then the discussion surrounds banks and other financial institutions from being barred from bitcoin dealings. And every single time there's panic. And what happens when there's panic? The price drops. Someone makes a lot of money. I received an email this morning from a reader asking why I haven't covered this latest news coming from China. Apparently, these "talks" between the People's Bank of China and financial institutions are getting serious.....
China has reportedly banned financial institutions and payment companies from offering Bitcoin service to clients.
The new version will essentially also clear the way for the digital yuan to be the one and only official yuan-pegged token in mainland China.
Chinese Bitcoin Exchange Huobi’s CEO Leon Li has posted basic information regarding bitcoin and recommendations on its regulation in a recent article titled: “A Study on the Current Developing Situation and Regulation of the Bitcoin Industry.” This article was written for the Tsinghua Financial Review, an influential journal in China. Tsinghua has not posted articles involving digital currency, and neither has any other influential journal in China. An interesting fact considering China’s huge involvement in Bitcoin’s price throughout the years. It is important to mention that Tsinghua....
A common but mistaken refrain is building that bitcoin's behavior of late has been a replica of the infamous late 2013 rise and crash. Certainly, a similar narrative could be spun: bitcoin breaks $1,000, the People's Bank of China issues some comments that scare people, bitcoin crashes. But if a few marketplace characteristics are investigated, I think the difference in bitcoin's maturity between then and now becomes clear. On 5th December, 2013, a short while after bitcoin broke $1,000, the People’s Bank of China (PBOC) sent out a statement claiming bitcoin was "not a currency in the....