The price of Bitcoin is going through a downward cycle and the culprit seems to be China all over again. The country is still doubtful regarding the status of the digital coin and the uncertainties are causing the price of the world’s most famous digital coin to go down.

However, an announcement made this Friday (11) by the People’s Bank of China (PBOC) stating that new cryptocurrency-related statements would be issued in order to clarify the central bank’s position caused the price of Bitcoin to recover from $380 to a bit over $420.


Zhou Xiaochuan

The bank’s governor, Zhou Xiaochuan, addressed the matter during the Boao Forum, a regional economic event that addresses economic problems in Asia. According to the representative, China will not seek to ban Bitcoin and other digital currencies.

“It is out of the question banning Bitcoin as it is not started by central bank”, Xiaochuan said, quoted by Coindesk.

“Bitcoin is not part of our jurisdiction, so there is no prohibition problem”, the governor added, later explaining that the PBOC is still considering how to treat the digital coin.

According to Zhou Xiaochuan, the cryptocurrency “is more a kind of tradable and collectible asset, such as stamps rather than a payment currency”.

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