European Commission Vice President Valdis Dombrovskis said bitcoin poses "clear risks" for investors and consumers due to its price volatility, Reuters reported Dec. 20, citing the official's statement at a news conference.
Dombrovskis said bitcoin could lead to "complete loss of investment, operational and security failures, market manipulation and liability gaps." He said virtual currencies are "not really currencies" and not backed by any country or issuer.
The commissioner has written to EU regulators calling for updated warnings on the risks of investing in bitcoin, Reuters said.
He is the latest official to discourage the use of the cryptocurrency, with Danish central bank Governor Lars Rohde saying earlier that bitcoin investors should not complain to regulators if things go awry.
The price of bitcoin has ballooned in 2017, although it fell sharply on Dec. 22.