The Bank of China is preparing to enter the cryptocurrency fray. According to a report from the Wall Street Journal, the People’s Bank of China, or PBoC, will soon officially ban the use of virtual currencies in payments. When the new rule goes into effect, which will apparently be in the coming weeks, it will prohibit the country’s largest banks from accepting payments with cryptocurrencies such as Bitcoin, Litecoin, Ripple and XRP.
“We don’t think cryptocurrencies are legitimate money,” said Li Dongsheng, a member of the PBoC’s internal monetary policy committee. “This will affect digital asset sales, like the one recently announced by Ant Financial, and trading of cryptocurrencies.” The PBoC’s announcement comes at the end of a week that saw Chinese regulators clamp down on cryptocurrency trade and investment. On Thursday, Chinese regulators announced that they were banning the sale of ICOs, which are often used to fund the creation of digital tokens and exchange for fiat currencies. Next week, the PBoC will reportedly convene a meeting to discuss the fate of cryptocurrencies.
Read the full story at Bloomberg.
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