China’s Central Bank steps in to warn Banks on Bitcoin

 

The Chinese Central Bank (PBC – People’s Bank of China) stepped in with an advisory notice, cautioning banks not to invest and/or trade in Bitcoins as it was not backed by any deposit and is deemed a serious risk.

It also cites that trading of Bitcoins amongst individuals is okay, as long as they understand the risk the digital currency poses.

Shortly after this announcement, Bitcoin prices fell, as the largest Bitcoin Exchange (which happens to be in China), saw massive sell orders.

The original report by Reuters can be read here.

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