×

CCTV Script 26/02/14

— This is the script of CNBC's news report for China's CCTV on February 25, Tuesday.

Welcome to the CNBC Business Daily.

It's the Curious Case of the Bitcoin Blackout.

A temporary trading halt at the world's biggest bitcoin exchange has got rumours mounting.

Has the big Hack Attack come to haunt Mount Gox?

The Tokyo-based bitcoin exchange has reportedly lost over 700,000 bitcoins due to the trading fault. That's 400 million in US dollars.

No explanation was given for the blackout, but Bitcoin CEO said that it's a turning point for the business.

So is bitcoin worth the paper it's not printed on?

[Soundbyte on tape by Mitul Kotecha, Head of Global FX Strategy, Credit Agricole] Currencies are a store of value, absolutely. Currencies are a medium of exchange. What is the underlying value of a bitcoin? It's very difficult to assess, because there's nothing underneath that.

[Soundbyte on tape by Rich TEO, CEO, itBit] The situation looks pretty dire. They've halted trading and it seems that a lot of their client assets might be at risk at this point. I think that over time, we'll see better infrastructure get put in place in the industry, and that should help to alleviate a lot of the volatility that we're seeing today. Bitcoin is not just meant to be a store of value, it's also meant to be a form of transaction, and I think over time, as this infrastructure flows out, we'll see more and more companies use it to transact and that should result in substantial cost savings for the payment system.

Li Sixuan at CNBC's Singapore headquarters.

Follow us on Twitter: @CNBCWorld