The prices of leading cryptocurrency Bitcoin and others such as Ripple, Ethereum, Litecoin gained after European Central Bank (ECB) allayed fears of a ban on trading in virtual currencies. He said it's not his institution's job to regulate cryptocurrencies.
As part of the ECB's #AskDraghi video series, when asked whether he would recommend purchasing bitcoin by a college student, Mario Draghi, the president of the ECB, said he would think "carefully" about buying bitcoin. He does not see bitcon as a currency.
Earlier in the month, Draghi had warned banks about the dangers of the highly volatile nature of cryptocurrencies and branded bitcoin a "high risk" investment. He also asked investors to be cautious over cryptocurrency amid concerns over the digital tokens' volatility.
Recently, three European Supervisory Authorities (ESAs) have issued a warning to consumers across the EU related to investing and trading in virtual currencies. They said Bitcoin and other virtual currencies "have shown clear signs of a pricing bubble".
The head of the Bank for International Settlements or BIS, Augustin Carstens, also had said last week that while digital currency is perhaps intended as an alternative payment system with no government involvement, it has become a combination of a bubble, Ponzi scheme, and an environmental disaster.
In the Eurozone, German and French finance ministers and central bank governors have sought joint action by the G20 group of advanced and developing countries to tackle the risks posed by cryptocurrencies.
Cryptocurrencies such as Bitcoin, Ripple, Ethereum and many others have been highly volatile of late with significant daily fluctuations in their prices.
Lack of regulation is among the top concerns among the authorities.
Bitcoin price had increased sharply in 2017 from around $1,000 in January 2017 to nearly $20,000 in mid-December and then plunged almost 70 percent to about $6,200 in early February 2018.
Bitcoin, the leading cryptocurrency in terms of both value and market cap, has more recently recovered more than 50 percent from the low, and is currently trading as of 7.35 am ET on Thursday up 5.20 percent at $9,680, as per Coinbase Price Index.
Meanwhile, Ethereum is up 3.72 percent at $922, Litecoin is up 14.92 percent at $224, and Ripple is up 5.21 percent at $1.12.
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