The Central Bank of Taiwan Denies Bitcoin the Status of Legal Tender

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The Central Bank of Taiwan Denies Bitcoin the Status of Legal Tender
The Central Bank of Taiwan Denies Bitcoin the Status of Legal Tender

The Central Bank of Taiwan Denies Bitcoin the Status of Legal Tender

After the governments of China and India, the government of Taiwan has brought in onslaught on Bitcoin as it considers that it is not a legal tender for financial purposes. In its statement the Central Bank of the Republic of China has denied Bitcoin the status of legal tender. The statement was issued by officials of the Taiwanese central bank at a press conference.

In its statement the central bank of the ROC said that due to the digital currency’s exceedingly high volatility, Bitcoin is not a viable currency for accounting and deposits of value. The local media of Taiwan reported that the ROC central bank’s announcement is in line with its counterpart from across the strait.

It is evident that earlier the last month in 2013, China warned financial institutions in the country to refrain from engaging in activities denominated in the digital currencies like Bitcoin.

Bitcoin is Not Minted by the Monetary Authority, Says the Official

In his statement at the press conference, Central Bank Deputy Governor Yang Chin-long said that as Bitcoin is not minted by the monetary authority of any sovereign nation, it does not carry the legal protection and tender status of conventional currency. The official stand of the government is expected to harm Bitcoin to great extent.

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Thus, Bitcoin which is already facing a lot of challenges after Chinese and Indian governments discouraged the users claiming that the digital currencies have inherited risks and cannot be used for financial transactions, is further going to face the trouble. The measure on the part of Taiwan expected as many traders after closure in China, started trading in Taiwan.

Earlier in the first and second week of December last year, propelled by zealous trading in the vast China markets, the value of Bitcoin went to crazy heights and crossed the benchmark of $1200. When the speculations were going higher and higher for the digital currency a setback came when the Chinese authorities came with the guidelines.

Dizzying Heights and Quick Fall

Reaching to the benchmark of $1200 and then falling to half, Bitcoin showed the extreme volatility. The fall was due to an unwelcoming statement from the People’s Bank of China wherein it said that this digital currency cannot be used in financial transactions; however, there is still some scope as it can be used as a commodity.

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

  • FreeJack2k2

    I think we’ll be okay if the central banks of the world don’t grant Bitcoin, Litecoin et al their “blessing” as “legal tender” – after all, I could pay with a wad of chewed up gum if someone accepted it as payment, without any government overlord’s approval.