Bank of England governor Mark Carney said Bitcoin had failed as a currency, but that the underlying technology which records and verifies the chain of transactions might prove useful.
Warren Buffett, the venerated investor, said the speculative cryptocurrency craze “will come to a bad end”.
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Ms Morgan said: “People are becoming increasingly aware of cryptocurrencies such as Bitcoin, but they may not be aware that they are currently unregulated in the UK, and that there is no protection for individual investors.
“The Treasury Committee will look at the potential risks that digital currencies could generate for consumers, businesses, and governments, including those relating to volatility, money laundering, and cyber-crime.
“We will also examine the potential benefits of cryptocurrencies and the technology underpinning them, how they can create innovative opportunities, and to what extent they could disrupt the economy and replace traditional means of payment.”
But she also wants to strike a balance between protection and regulation, and not hindering the blockchain technology behind cryptocurrencies. “As part of the inquiry, we will explore how this can be achieved,” she said.
The committee, which has yet to set a date for its first evidence session, will take evidence on key questions, including: