China and France made a statement regarding Bitcoin

The People’s Bank of China (PBC) warned financial institutions to steer clear of the digital currency. The statement, issued Thursday jointly by PBC and five other ministries, said the virtual currency has «no legal status or monetary equivalent». This available on the bank’s website. The statement said, financial and payment institutions are urged not to use bitcoin pricing for products or services, may not trade or sell bitcoins, sell bitcoin-related insurance, provide customers with Bitcoin registration, trading or other services, conduct bitcoin storage, issue mortgages in bitcoin, or set up investment funds or trusts based on the currency. But it is worth noting that individuals and businessman’s are free to buy and use Bitcoin at their own risk.

The announcement has already caused a massive price drop on several exchanges, in particular BTC China. But after a while the rate went back up. At the moment the Bitcoin price in BTC China is about $900.

On Thursday, France’s central bank also made a statement about Bitcoin. It says that Bitcoin is anonymous and unregulated currency and this made it suitable for money laundering and sponsoring terrorism. The bank stressed that bitcoin isn’t a credible investment vehicle yet, and that it does not pose a threat to financial stability. But that it also poses a risk for those who choose to invest. Bank also warned retailers that choose to accept bitcoin that they run the risk of being unable to cash in their bitcoin for real money.

Nonetheless, despite the negative character of the statements that has been made, they mean that states recognize the existence of Bitcoin as currency.

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