Daily Data Flow

China Shuts Down Bitcoin Loophole

China Shuts Down Bitcoin Loophole (Reuters)

Bitcoins, an electronic currency not backed by any governmental or corporate institution, were recently the subject of a bi-national currency play. You could pay for a bitcoin in U.S. dollars, and sell it for considerably more in Chinese yuan. The gap for this play peaked on Nov. 19 with a 30% spread. However, bitcoins are still vulnerable to the currency controls of governments. Chinese officials announced last week that commercial banks are forbidden from dealing in bitcoins.

Sign Up
DISQUS COMMENTS

FACEBOOK COMMENTS

Comment with Facebook