The governor of the British central bank warns against using cryptocurrencies such as bitcoins when making payments.

According to Andrew Bailey, digital currencies fluctuate widely in value and are therefore not suitable as a means of transacting.

He agrees with some other prominent figures from the financial world who have criticized the digital currencies in recent times.

Bailey is known among central bankers as a prominent critic of cryptocurrencies.

Recently, he said there was a danger of people getting too caught up in financial innovation.

He also warned again on Monday that people who buy digital coins run the risk of losing all their money.

According to him, there is no real underlying value in crypto coins.

Recently, the Chinese central bank also made it clear that it intends to restrict digital currencies. In addition, at the end of last week director Pieter Hasekamp of the Central Planning Bureau (CPB) proposed a ban on the trading of digital currencies, a measure that outgoing Minister of Finance Wopke Hoekstra does not see much in.

In the same week, the government in Latin American El Salvador decided to accept bitcoin as a means of payment, as the first country in the world.

Influential Tesla CEO Elon Musk was also more positive about bitcoin on Monday, after he had banned the currency earlier.

He said his company will accept bitcoins again if the system behind it starts using more renewable energy.

A lot of electricity is used when creating new bitcoins ('mining').

In the meantime, the Bank of England is looking at its own digital currency, just like China and Russia, among others.

Bailey says the first thing to consider is what the potential of such currencies for central banks could be.