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Central bank in China warns banks of bitcoin risks

bitcoins in China face even more pressure, as the Chinese central bank warns other banks of the cryptocurrency.

Published Wed, May 7 2014 11:17 PM CDT   |   Updated Sat, Aug 8 2020 10:29 AM CDT

The People's Bank of China is limiting bitcoin-related business, and is urging executives from other major Chinese banks to follow suit. Towards the end of 2013, the central bank didn't shun bitcoins, but showed caution regarding the popular cryptocurrency - but that opinion has drastically changed, saying bitcoins are a "tool for speculation."

Central bank in China warns banks of bitcoin risks | TweakTown.com

If major banks in China try to shut down bitcoin transactions, it will create a void that a bank in China should be able to step up and fill.

Since bitcoins aren't centrally regulated by banks or governments, trying to figure out how to deal with them has proven to be extremely challenging. Earlier in the year, the IRS ruled that bitcoins are considered property and not real currency, though that hasn't stopped retailers from accepting bitcoin payments. Despite hiccups along the way, bitcoins continue to gain mainstream acceptance and any type of legislation must be created carefully - yet quickly moving forward.

An experienced tech journalist and marketing specialist, Michael joins TweakTown looking to cover everything from consumer electronics to enterprise cloud technology. A former Staff Writer at DailyTech, Michael is now the West Coast News Editor and will contribute news stories on a daily basis. In addition to contributing here, Michael also runs his own tech blog, AlamedaTech.com, while he looks to remain busy in the tech world.

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