The Chinese government bank has made it clear in its note that financial and payment institutions are not allowed to fix the price of products or services in virtual currency.
Bitcoin Connection With China
The prices of Bitcoin and jokingly launched cryptocurrency Dogecoin have dropped after this threat from China. Bitcoin prices had already fallen since Tesla’s statement. Now after the warning from the People’s Bank of China, bitcoin prices have come down to the low of February. Actually, this big bank of China has made it clear that bitcoins or other digital tokens cannot be used as payment.
After this statement from China, bitcoin prices have registered a decline of 5.1 percent. In New York, its price has come to the level of 42 thousand dollars. Prior to Tesla’s statement there was a huge drop in cryptocurrency, especially bitcoin prices.
Prices at the lowest level since February
After this decline, bitcoin prices have come down to the lowest level since February. At the same time, currency Dogecoin started as a joke has also been registered. The notice issued on the official WeChat account of the People’s Bank of China, the state-run bank of China, states that virtual currencies should not be used in the market as they are not real currencies. Actually China is preparing to bring its digital currency. China recently said about releasing its digital currency yuan. It is now believed that China is taking these steps to promote its digital currency.
Ban has been in China since 2017
The Chinese government bank has made it clear in its note that financial and payment institutions are not allowed to fix the price of products or services in virtual currency. There was a time that these virtual currencies are most commonly used in China. But since 2017, China has banned these currencies. Earlier, the turnover of these currencies was up to 90 per cent by China.
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