On its official windows website Microsoft announced that it will no longer accept Bitcoin for payments in their Windows 10 and Windows 10 Mobile. The existing Bitcoin balances can still be used for payments, though. The announcement read:

“You can no longer redeem Bitcoin into your Microsoft account. Existing balances in your account will still be available for purchases from Microsoft Store, but can't be refunded.”

Bitcoin’s value had earlier surged by USD 20 in December, 2014, when Microsoft had announced the plans to integrate Bitcoin into its Windows and Xbox digital payments system in association with BitPay.  

Microsoft’s interest in the digital currency

Microsoft’s Founder Bill Gates had also earlier stated that he was supportive of the digital currency. In an interview with Bloomberg in October, 2014, he had said:

"Bitcoin is exciting because it shows how cheap it can be. Bitcoin is better than currency in that you don't have to be physically in the same place. And of course for large transactions currency can get pretty inconvenient."

However, recently, Microsoft’s interest had changed its focus from Bitcoin to Blockchain, the distributed ledger system on which Bitcoin and other cryptocurrencies are built.

Microsoft is building what it is terming a “certified blockchain marketplace” on its cloud computing platform, Microsoft Azure where the participants will have to undergo rigorous testing.