Bitcoin denied status as legal tender by ROC Central Bank

By Ted Chen, The China Post

TAIPEI, Taiwan — The Central Bank of the R.O.C. has denied Bitcoin the status of legal tender, officials announced at a press conference yesterday. According to the central bank, due to the digital currency’s exceedingly high volatility, Bitcoin is not a viable currency for accounting and deposits of value. Central Bank Deputy Governor Yang Chin-long (楊金龍) yesterday stated that as Bitcoin is not minted by the monetary authority of any sovereign nation, the digital currency does not carry the legal protection and tender status of conventional currency. The R.O.C. central bank’s announcement is in line with its counterpart from across the strait, who recently warned financial institutions in China to refrain from engaging in activities denominated in the digital currency.

According to reports, propelled by zealous trading in the vast China markets, the value of Bitcoin recently saw a sevenfold surge over the course of November. The volatility of the digital currency became apparent as it lost 28 percent in value last Thursday, following an unwelcoming statement from the People’s Bank of China. According to data from BTC China, the largest Bitcoin trading platform in the mainland, the digital currency’s strength and approximate market value has recovered from its Dec. 19 low of 2,752 yuan, to yesterday’s closing of 4,361.83 yuan.