The widespread adoption of Bitcoin and other cryptocurrencies will be stymied by the fact that they are not backed by a so-called 'lender of last resort', the French bank BNP Paribas has claimed.

Replacing traditional currencies with Bitcoin would come with significant risks and undermine monetary policy, the French bank said.

Bitcoin and other cryprocurrencies do not have an equivalent body to the Bank of England, which could provide oversight of the financial services or products created using Bitcoin.

The UK's central bank determines interest rates and some financial regulation. It also acts as a lender of last resort, stepping into to bail out banks, as it did during the financial crisis of 2009, to protect savings and mortgages.

If consumers used a cryptocurrency for vital products such as mortgages, they would have no security and could lose their money if a financial crisis occurred. Such a scenario could trigger a run on conventional banks, according to BNP Paribas, as consumers would seek to suddenly get cash from other sources.