Reserve Bank of Australia Governor Philip Lowe said the current fascination with cryptocurrencies feels more like a speculative mania.
In reality, cryptocurrencies, especially bitcoin are not being commonly used for everyday payments, Lowe said in Sydney.
When thought of purely as a payment instrument, it seems more likely to be attractive to those who want to make transactions in the black or illegal economy, rather than everyday transactions, the banker said.
Lowe noted that the value of Bitcoin is very volatile, the number of payments that can currently be handled is very low and there are governance problems.
Moreover, the transaction cost involved in making a payment with Bitcoin is very high and the estimates of the electricity used in the process of mining the coins are staggering, he added.
by RTT Staff Writer
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