The value of Bitcoin has dropped dramatically after China’s central bank refused to acknowledge the currency.
China banned its banks from handling transactions involving Bitcoin as it is not backed by any nation or central authority, according to a notice.
The People’s Bank of China has warned Chinese citizens not to trade in Bitcoin, as it lacks legal protections, but people were free to use it if they understood the risks.
This move was made in order to curb illegal use and money laundering, the bank said, and was ahead of tighter controls to be introduced on exchanges that dealt in the currency.
The value of one Bitcoin fell 28% over two hours on Thursday (5 December), according to the Guardian. It is currently worth £623.90, as of 11.26 on Friday 6 December.