Bitcoin less than $ 40,000 after China’s announcement: “These are not real currencies”

Following a wake-up call in China against cryptocurrency, bitcoin fell below the symbolic $ 40,000 mark on Wednesday, for the first time in more than three months.

In Beijing in the early afternoon (around 6.30pm GMT), the value of the main cryptocurrency fell to $ 39,600, yielding more than 8%, while it was priced at $ 43,602 early in the morning.

In question? An announcement by Chinese banking officials calls into question the legitimacy of virtual currencies, when the country was for a time one of the strongholds of bitcoin, the most widespread of virtual currencies.

However, Beijing took a radical turn in 2019 by making cryptocurrency payments illegal in the country, which were accused of being a tool in the service. “Criminal activities”.

Asian countries were concerned about the speculative risks that cryptocurrency affected their financial system as well as social stability.

On the other hand, bitcoin mining activities and having virtual currency on an individual basis are permitted.

New fall for bitcoin

As interest in virtual currencies increases abroad, three banking federations are called financial institutions on Tuesday. “do not accept” […] Or use cryptocurrency “ As a means of payment.

“Recently, the prices of virtual currencies have risen and fallen again” Speculative activities while abroad “jumped up”, He noted in a joint statement.

this “Seriously endangers the security of personal property and disrupts the world economic system”, Criticized the National Internet Finance Association, China Banking Association and Payment and Compensation Association.

If China bans cryptocurrency transactions, it is still accelerating preparations to launch its own virtual currency, which will be issued and overseen by the central bank.

The Chinese digital currency, a future means of electronic payment on smartphones to replace coins and banknotes, could make its debut in 2022 during the Beijing Winter Olympics.