Zynga Sparks Bitcoin Rally

Online gaming Company Zynga has announced that it is testing whether to accept the virtual currency Bitcoins as payments for some of its games. The new sparked a rally in Bitcoin prices, which topped $1,000.

Zynga Sparks Bitcoin Rally

The Bitcoin rollercoaster continues.

Online gaming company Zynga announced it is testing whether to accept Bitcoins for seven of its games and that sparked a rally in Bitcoin prices.

The virtual currency hit as much as $1,000 on some exchanges.

The rally came right after a dip in Bitcoin prices last month as the virtual currency is getting mixed reactions from international regulators. Many countries have warned—most recently India—that virtual currencies—which are not regulated by any bank or country—could be easily used for illegal activity and money laundering. China, for example, recently placed several curbs on Bitcoin use.

Zynga announced that it is testing the currency for select games and that Bitpay, one of the largest Bitcoin payment processing firms, will handle the transactions.

The Bitcoin test is only available to Zynga.com players playing FarmVille 2, CastleVille, ChefVille, CoasterVille, Hidden Chronicles, Hidden Shadows and CityVille.

In some other developments, Texas Congressman Steve Stockman announced he will accept Bitcoins as campaign contributions.

Stockman, who is running for Senate this year, told reporters of the move at an event promoting the NYC Bitcoin Center in New York’s financial district.

It’s not clear whether Bitcoin donations are legal, however, or whether Stockman has actually received any.

Stockman also said he plans to file a bill that would keep federal or state regulators from interfering with “Bitcoin and the Bitcoin economy,” according to a recent tweet from Stockman.

“I really think digital currency is all about freedom,” Stockman said in a video shot in Manhattan and posted on YouTube this week. “Bitcoin is going to be an alternative for citizens who are free to determine their own future and be able to keep their own wallet.”

Also, the South Dakota-based Oglala Lakota Nation has announced it is exploring making Bitcoins its principal currency in the hope of alleviating persistent poverty in the tribe.