Qatar Central Bank said in its statement to all the banks, that trading in Bitcoin is not allowed in the country and penalties will be levied if the circular is violated.
Some countries have noticed active trading in Bitcoin, however, many still believe it to be an illegal currency as there is no commitment from any central bank or a government in the world to exchange their value for money issued and cleared for payment for the goods traded globally or for gold, the statement said.
“This cryptocurrency is highly volatile and can be used for financial crimes and electronic hacking as well as risk loss of value because there are no guarantors or assets,” it added.
The Central Bank has taken the decision to prohibit Bitcoin in order to ensure the safety of the financial and banking system.
US and Britain banks have also restricted the use of credit cards to buy Bitcoin and other “cryptocurrencies”, fearing a plunge in their value will leave customers unable to repay their debts.