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Vietnam banned banks from using Bitcoin

Published on Feb 28, 2014 3:08 PM
 

HANOI (AFP) - Vietnam has banned its banks from handling Bitcoins, saying the virtual currency is not legal tender in the communist nation.

Bitcoin, invented in the wake of the global financial crisis, is a form of cryptography-based e-money that offers a largely anonymous payment system, but its value is highly volatile.

"The ownership, trading and use of Bitcoin and other virtual money as an asset carries potential risks for users," the State Bank of Vietnam said in a statement late on Thursday.

It warned against investing in Bitcoin or processing transactions using the crypto-currency, saying it was forced to act after seeing a rise in its use on "some trading floors".

 
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