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The virtual currency can now be used to add funds to Microsoft accounts that can then be spent on a variety of Microsoft services.

 

The cash can be used to buy content such as games and videos on Xbox game consoles, add apps and services to Windows phones or to buy Microsoft software.

Doesn't sound like Microsoft are accepting Bitcoin. Sounds like Microsoft are accepting government-backed money. They've just teamed up with a bitcoin trader who is willing to be a medium, taking bitcoin from person A and giving Microsoft cash equivalent (minus a small percentage, no doubt)

 

That's my take on it, anyway.

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