Investors should be aware of the risks from the rapid rise in the price of digital currency Bitcoin (Bitcoin), Bank of England Deputy Governor Sir Jon Cunliffe has warned, the BBC reported.
The Bank's deputy for financial stability said that “when prices grow so fast, investors should do their homework and think carefully".
But he added that Bitcoin's rise was not big enough to unsettle the economy.
Bitcoin hit a high of $11,377 on one major exchange on Wednesday, an increase of more than 1,000% from the start of the year.
Asked about the surge, Sir Jon said: "People need to be clear this is not an official currency. No central bank stands behind it, no government stands behind it."
He said it was "closer to a commodity" than a currency, with people choosing to invest and trade in it.”
Despite its price rise, Sir Jon said Bitcoin was "not of a size that would be a threat to financial stability" or a risk to the UK economy.