China has just taken drastic action against Bitcoin and cryptocurrencies. Through the voice of three major banking federations in the country, the Middle Empire banned the use of BTC and other virtual currencies as a means of payment.
Indeed, investors in the sector have also taken fright following several drastic measures taken by the Chinese government. Three Chinese banking federations, among the National Internet Finance Federation, the China Banking Federation and the Payment and Clearing Federation announced in a joint statement the ban on the use of Bitcoin or other cryptocurrencies as a means of payment.
“Recently, cryptocurrency prices have soared and fallen, and speculative cryptocurrency trading has rebounded, seriously undermining the security of people’s property and disrupting the normal economic and financial order,” the three Chinese institutions assured.
CHINA CONSIDERS BITCOIN AS A THREAT TO ITS ECONOMY
Under this ban, all banks and online payment channels in the country must not offer customers services that involve cryptocurrency, such as registration, trading, clearing, and payment. In addition, savings and collateral services (a guarantee relating to an intangible asset such as shares or a business) including cryptocurrencies are also prohibited.
On the other hand, mining activities for Bitcoin and any other cryptocurrency, as well as the holding of virtual currencies are still allowed. If China is therefore mobilizing against the queen of cryptocurrencies, the country is still preparing the launch of its own virtual currency, which will be issued and supervised by the Chinese central bank.
For now, its launch is scheduled for 2022 for the Beijing Winter Olympics. As a reminder, India has also taken action against Bitcoin. There is a bill aimed at making the holding of Bitcoins illegal…
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