Bitcoin will not be legitimatized in China

Yi Gang, the deputy governor of China's central bank, said that the People's Bank of China will not admit the legitimacy of bitcoins in the short term, during a forum on November 20, 2013.[Special coverage]

Yi's comment comes after the recent boom of the Chinese bitcoin market. Bitcoin transactions for November were twice that of October, based on data from China's three largest bitcoin dealing websites: BTC China, okcoin and huobi.com.

However, Yi admitted that bitcoin is an "interesting" and "inspirational" development and added that he will personally focus on the virtual currency's future.

Bitcoin is a digital currency that is distributed and circulates without the mediation of a particular authority.

The price of bitcoins has also jumped from 1,250 yuan (205 US dollars) per bitcoin at the beginning of this month to 4,300 yuan (706 US dollars) on November 20.

Chairman of the US Federal Reserve, Ben Bernanke also said in a letter ahead of US congressional hearings on November 19 that the Fed, "does not necessarily have authority to directly supervise or regulate these innovations or the entities that provide them to the market".

But Bernanke also pointed out that bitcoin and its ilk, "may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system".