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January 06, 2014

Bitcoin Surges on Zynga Announcement

by VOA News

The value of the battered virtual currency, Bitcoin, surged again in trading to over $1,000 as popular gaming company Zynga Inc. announced it would test allowing users to pay for the games using it.

In a post on Reddit, the company said it would be working with BitPay to offer “payment options for players to make in-game purchases using Bitcoin.”

Zynga is among the first widely known companies to accept Bitcoin, which has yet to become a viable form of payment with major retailers such as Amazon.com.

In late December, multiple bitcoin exchanges in India shut down operations after the country’s central bank warned about the currency.

Earlier that month, the value of the currency plummeted to below $500 when China announced it would no longer allow the deposit of yuan for the cyber currency. Much of the value of the currency had been pumped in China due to the feeling that the virtual money could be a way for Chinese to move their money offshore.

The Bank of France has also warned about the risks of the unregulated virtual money.

Bitcoin is not backed by any central bank or government. The value depends on public confidence in the currency.