Bitcoin price cryptocurrency
Bitcoin price surges as Kim Dotcom looks to bitcoin as a payment solution for Mega IBTimes UK

Bitcoin's market cap has risen above $3.5bn (£2.3bn) for only the second time in February, following a 7% surge in value over the past 24 hours.

This has prompted price increases across the cryptocurrency markets, with the anonymity-focused darkcoin seeing the most significant movement of more than 10%.

Of the other big players, litecoin, dogecoin and paycoin all rose in value by between 2% and 5% since yesterday, according to CoinMarketCap.

Kim Dotcom's Mega could use bitcoin

Kim Dotcom has hinted his Mega file-sharing service could be looking to bitcoin as a method of payment after PayPal cancelled processing payments.

"PayPal can confirm that we have decided to end our relationship with Mega for business reasons," a PayPal spokesperson told IBTimes UK.

"We respect the privacy of all our customers and former customers and will not provide further details about this decision."

Bank of England suggests it could issue digital currencies

The Bank of England has said central banks could issue digital currencies in order to take advantage of their benefits.

"Digital currencies, potentially combined with mobile technology, may reshape the mechanisms for making secure payments, allowing transactions to be made directly between participants," the bank said in a discussion paper.

"This has potentially profound implications for a financial system whose payments mechanism depends on bank deposits that need to be created through credit."