Bitcoin price has fluctuated in price under warnings of further regulation, credit card bans and mining being restricting.
Bitcoin has steadily risen above $8,000 after the cryptocurrency had plummeted to a low of $5,947 earlier this week.
Experts have blamed the threat of regulation to why bitcoin has dropped from its top price of around $19,000 last December.
Speaking to Bloomberg, Agustin Carstens said there is a “strong case” for authorities to increase their regulation of cryptocurrency because of their links to the established financial system.
He called for central banks, finance ministries, tax offices and financial market regulators to police the “digital frontier” to protect the “real value” of money.
Mr Carstens said: “Bitcoin is not functional as a means of payment, but it relies on the oxygen provided by the connection to standard means of payments and trading apps that link users to conventional bank accounts.
“If the only ‘business case’ is use for illicit or illegal transitions, central banks cannot allow such token to rely on much of the same institutional infrastructure that serves the overall financial system and freeload on the trust that it provides.”
There is also a risk to the bitcoin mining process, with the question being raised about its profitability while the cost electricity is incredibly high.
Bloomberg say that if bitcoin is clocked at its 50-day moving average of $13,200, then the average miner could expect to print $80 per week in profit at current levels of computation (hash rate) and difficulty.
With the price now less than half of that, it is safe to assume that some miners are now losing money.
However, Aleksei Antonov, CFO of SONM says that the idea that miners could just down tools and leave the space is not likely.
He said: “Bitcoin mining is also a market itself. As soon as Bitcoin mining becomes unprofitable, some miners will stop mining it.
“The total Hashrate decreases and for all the miners that remain, mining becomes a little more profitable.
“If Bitcoin costs $10, there will be very few miners, but those miners will take the entire reward for the calculated block.
“To summarise, there is no situation when mining becomes unprofitable for everyone at all.”