13.12.201703:40:00UTC+00RBA Governor Criticizes Bitcoin Hype

Reserve Bank of Australia Governor Philip Lowe became the latest central banker to voice the increasing criticism of bitcoin, stating the digital cryptocurrency that has risen by more than 17-fold in value this year is more likely to be more useful to criminals than consumers.

RBA chief Lowe said that when the cryptocurrency is perceived only as a method of payment, it seems to be more attractive to those who are engaging in illegal activities, rather than daily transactions.

He said that given this, the current fascination surrounding the currencies feels more similar to a 'speculative mania' rather than with the bitcoin's use as an efficient and convenient form of electronic payment.

He added that the value of bitcoin is very volatile, the transaction payments that can be handled at the moment is very low, and there is also regulation issues.

This year, the digital currency has surged as people hurried to acquire bitcoin in the hope that it will be an alternative to gold or traditional cash. Lowe joins the voice of other central bankers around the world who have cautioned regarding the downside of digital currencies.