By Clement Bigot, legal expert and consultant in international affairs, for Eurasia Business News. September 24, 2021
Bitcoin price falls on Friday amid the announcement of the People’s Bank of China (the China’s central bank) that cryptocurrencies are not legal tender in the territory of the Popular Republic of China.
“Commercial activities related to cryptocurrencies are illegal,” said the Central Bank.
The PRC government will “vigorously fight cryptocurrency trading and related financial transactions, as well as illegal actions to protect people’s property, as well as maintain economic, financial and social order,” stated the bank regulator.
Bitcoin price dropped by 3.59 %, to reach $42,215.85 at 06:58 PM Paris time. Ethereum price was down by 6.18% to reach $2,909.99 at 06:59 PM Paris time.
Why this fall is temporary
The Bitcoin rush is favoured in particular by the status of the cryptocurrency against the depreciation of “classic” currencies and by the interest aroused among an increasingly wide range of institutional investors and the growth of the blockchain industry. What the Chinese authorities decide about cryptocurrencies may affect the volatility of the market in the day, but on the medium and long terms, China cannot go against crypto. Cryptocurrencies and blockchains are deeply linked with the digital industry and are supported by large investors and banks.
Goldman Sachs, JP Morgan to Morgan Stanley, investment fund like SkyBridge Capital, fintech like Paypal or Square Inc. and industrial tech companies such as Tesla Inc have invested significant funds in Bitcoin or have started to offer access to crypto-funds.
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© Copyright 2021 – Clement Bigot, legal expert and consultant in international relations.