China Shuts Down Bitcoin Loophole (Reuters)

Bitcoins, an electronic currency not backed by any governmental or corporate institution, were recently the subject of a bi-national currency play. You could pay for a bitcoin in U.S. dollars, and sell it for considerably more in Chinese yuan. The gap for this play peaked on Nov. 19 with a 30% spread. However, bitcoins are still vulnerable to the currency controls of governments. Chinese officials announced last week that commercial banks are forbidden from dealing in bitcoins.

Adrienne Minor

Adrienne Minor is an editorial assistant for Eagle Financial Publications. She writes, edits and posts articles for the website, as well as edits and assists in the online distribution of Eagle’s investment newsletters, trading alerts, e-letters and other reports. Adrienne's special investing interests are in mobile technology and consumer spending.

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