Cautions made by the People’s Bank of China on the use of digital coins as payment dragged the crypto space to descend even further, Bloomberg reported.
- The PBOC in a notice said virtual currencies should not and cannot be used as they are not real currencies.
- Bitcoin plunged by as much as 10% to $38,973 after the notice. It last saw the $40,000 level in early February.
- Other tokens were also affected by the statement, such as Ether and Dogecoin.
- Bitcoin was last trading down 19.59% to $35,452.96; Ethereum down 36.94% to $2,061.74; and Dogecoin down 42.47% to $0.286134 at 1:01 p.m. GMT, according to Coindesk.
- An official of a crypto lender said China’s latest remarks is the latest chapter of China tightening the noose around the crypto economy.
- A Chinese think-tank Director said the statement does not entail new regulations, and is just caution for the market.