Bitcoin not big enough to threaten world economy, says BoE deputy
The cryptocurrency has climbed 10-fold so far this year, the largest gain of all asset classes and prompting sceptics to warn it is a classic speculative bubble.
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01:39 PM IST
Bitcoin is not at a size where it would pose a risk to the global economy, Bank of England Deputy Governor Jon Cunliffe said on Wednesday, as the virtual currency soared to a record high above $10,000 on major exchange.
The cryptocurrency has climbed 10-fold so far this year, the largest gain of all asset classes and prompting sceptics to warn it is a classic speculative bubble.
"I would just say investors kind of need to do their homework," Cunliffe told BBC Radio.
He said he did not think British households as a whole were going on a "debt-fuelled binge" but added that fast rates of consumer credit growth needed to be watched.
Cunliffe was in the minority of officials to vote against a rise in interest rates that took place earlier this month.
Asked why in a separate BBC radio interview, Cunliffe said that although he agreed with his colleagues that Britain`s potential rate of economic growth had slowed since the financial crisis, he wanted to see more sign of inflation pressure.
"My view was given the disappointments we`ve had about pay increases and domestic cost pressures over recent years, we should wait to see those before raising rates."
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