Bitcoin not big enough to threaten world economy, says BoE deputy

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."