Jon Cunliffe, Deputy Governor of the Bank of England, on Wednesday said, “Bitcoin isn’t big enough to pose a risk to the global economy.”

“I would just say investors kind of need to do their homework,” Mr Cunliffe told BBC Radio.

The statement was given after the cryptocurrency hit a record high of above £10,000 for the very first time.

The virtual currency traded below $1,000 at the start of the year and has since climbed 10-fold, sparking concerns from sceptics that the rise of bitcoin is a bubble waiting to burst.

Digital currencies have majorly been rejected by the Wall Street and the City, but the prospect of bitcoins soon becoming mainstream has fuelled the speculations.

Bitcoins and other types of cryptocurrencies such as litecoin and dash are now being accepted as a mode of payment by Bjork, a singer who is popular for her experimental music. She is accepting these cryptocurrencies as payment for her latest album which went on sale on 24 November.