China Bans Bitcoin Trading By Banks
China says banks in the country are no longer allowed to trade in Bitcoin, the digital currency whose value has sharply risen this year. Chinese citizens, however, are not forbidden from using the currency.
The Bitcoin exchange rate took a hit following Thursday's news from China's central bank.
From Shanghai, NPR's Frank Langfitt filed this report for our Newscast unit:
"China is the world's biggest market for Bitcoin and has helped drive its explosive appreciation this year. Today, though, the People's Bank of China appeared to prick the Bitcoin bubble here.
"China's central bank said Bitcoin is unsafe because it has few controls and makes it easier to launder money and finance terrorism.
"The bank said: 'It does not have the legal status of a currency, and it cannot and moreover should not be allowed to circulate in the market as a currency.' "