China Construction Bank Won’t Allow Bitcoin and Litecoin Payments

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China Construction Bank Won’t Allow Bitcoin and Litecoin Payments
China Construction Bank Won’t Allow Bitcoin and Litecoin Payments

China Construction Bank Won’t Allow Bitcoin and Litecoin Payments

As China’s central bank hammered the companies that accept Bitcoin in the country, China Construction Bank had no option but to announce that it won’t allow clients to use their accounts for transactions related to Bitcoin or Litecoin. However, China Construction Bank is not the only company that has announced so, Alipay and China Merchants Bank are others.

Currently, China Construction Bank is one of the “big four” banks in the People’s Republic of China. In fact, in 2011 it was the second largest bank in the world by market capitalization and 13th largest company in the world and its decision to accept the digital currency was considered one positive indication among the supporters.

However, now that it is the second major bank, after China Merchants Bank, to announce that it won’t accept Bitcoin and Litecoin, it looks like the digital currencies would be facing a lot of trouble in the sense that major financial organizations don’t seem to have the will to contest against the decision from the central bank of China.

Earlier in March this year, the central bank of China warned of the risks of trading in Bitcoin. It even went to the extent to ask banks and third-party payment agencies not to enable Bitcoin transactions and shut related accounts by April 15. The government watch dog then came across with some organizations that still accepted Bitcoin after April 15.

To shut all these entities permanently, the central bank of China again issued a warning and forced most Bitcoin trading platforms to shut their operations. On April 22 the central bank of China convened a meeting of executives of more than 20 commercial banks and third-party payment companies who deal with Bitcoin to discuss important issues.

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Will the Existing Bitcoin Platforms Move Out from China?

The bank demanded that the commercial banks suspend transactions and close current accounts with transactions related to Bitcoin. The latest decision on the part of China Construction Bank is in pursuance to the same demand from the central bank of China. Now, the risk is also looming large on the existing Bitcoin platforms.

If the local news reports are to be believed the existing Bitcoin platforms will probably have to move overseas, and Bitcoin trading will go underground in China. The times for Bitcoin are not as bright as they were some months ago; however, this does not seem to have any impact on Chinese investors who on the contrary have become the most active ones in the world.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com