Zynga adoption pushes Bitcoin back over $1,268

WASHINGTON - The virtual currency Bitcoin jumped back over US$1,000 (S$1,268) Monday after online gaming company Zynga began a test operation to accept Bitcoin in some of its games.

Zynga said in a posting on Reddit over the weekend that it is now accepting in-game purchases in seven of its online games, including FarmVille 2, CityVille, and Hidden Shadows, through the Bitcoin processor BitPay.

Zynga called the move a test "in reponse to Bitcoin's rise in popularity around the world."

The move appeared to help values of the online currency, which has sagged since China's central bank placed restrictions on its use in December and India's central bank issued a warning over risks involved in using it.

According to trading website Mt Gox, one Bitcoin reached US$1,093, up from trading in a range around the US$900 level on Friday and Saturday.

At the beginning of December, Bitcoin surged just past US$1,200 before sinking back to around US$700 on China's move.