Bitcoin’s recent rally has caught the attention of financial experts around the world. It hit an all-time high at 16666 levels on December 8, 2017 (Bitstamp) and is currently trading at 15874 levels at the time of writing.

Deutsche Bank Wealth Management has called for greater regulation and security for establishing cryptocurrencies as a viable asset class.

The bank is assessing the risks involved when investing in cryptocurrencies and their potential to replace traditional money. In its latest CIO Insights Reflections, the Chief Investment Office said that the recent price rises have been driven by speculation as well as imbalances between supply and demand. As such, cryptocurrencies remain a risky investment.

“If cryptocurrencies are to replace money, then they have to fulfil money’s three core functions: as medium of exchange, a measure of value and a store of value. To do this, cryptocurrencies must be more trusted. Problems here include high volatility and possible price manipulation as well as data loss or data theft,” the bank said.

Deutsche Bank is involved in a UBS-led project that is developing a blockchain-based digital currency. The “Utility Settlement Coin” would enable financial institutions to directly transact securities with each other, bypassing the traditional settlement process.