Bitcoin Represents a Problem to China
China is on the verge of an economic meltdown and Bitcoin can be one of its major problems. Beijing might be preparing to tighten the siege around companies and entrepreneurs doing business with Bitcoin. The latest Goldman Sachs report revealed that about 80% of bitcoin transactions are being made in China. With an economic slowdown on its hands, the People's Bank of China (PBOC) is trying to find and close down the holes from where many of the country's wealth is being taken out. Right now, China's highest priority is stability, and bitcoin growing popularity is having a negative impact....
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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....
Over the weekend, The Economist offered its takeon Bitcoin’s (and other altcoins’) China problem. It argues that regulation has driven people in China out of that market in droves over the last four months or so, which isn’t a shock to anyone. “Most investors have left the market,” BTC China’s Bobby Lee told the magazine. In late November, Bitcoin’s value against the dollar broke well clear of the $1,000 mark. On some exchanges, it peaked above $1,300. More than 100,000 Bitcoins were traded daily on the BTC China exchange, and we were all excited about China leading the way. Today,....
The price of bitcoin has crashed slightly following the breaking news that China is effectively banning the use of Bitcoin to carry out business for financial companies. The People's Bank of China has said that bitcoin doesn't quite have a "real meaning", and individuals should take caution if investing or using it. The story with financial institutions, however, is different. The central bank is banning the use of bitcoin for these companies. "The concern is that it interferes with normal monetary policy operation," said lead researcher Hao Hong from the Bocom International Holdings....
Recent reports from China indicate there may be more to the Bitcoin ban than meets the eye. According to the Financial Times (FT) the Chinese banking system is in crisis which could explain the Bitcoin ban in China. Chinese citizens seem to be running away from their own banking system in droves and their Government is closing the escape paths - including Bitcoin. During the run up of bitcoin in November you could watch the CNY currency leaking from China on sites like www.fiatleak.org and there was a breathtaking amount of Chinese currency leaking into BTC. The over night Repo rate is a....
The interviews in this article are part of CoinDesk's wider coverage of the Global Bitcoin Summit in Beijing, which took place 10th-11th May 2014. As part of a clampdown on bitcoin in China, the nation's bitcoin exchanges were forced by the authorities to pull out of any official involvement with Beijing's Global Bitcoin Summit earlier this month. However, CoinDesk was still able to meet with the CEOs of two of the largest exchanges, OKCoin and Huobi, at an off-conference event where they discussed the regulatory climate, bitcoin in China, and their plans going forward. Both OKCoin's Star....