Bitcoin has been compared to Dante’s Inferno by RBS chairman Howard Davies as the digital currency surges towards $16,000.

On Bloomberg TV, Davies called Bitcoin a “frothy investment bubble” and called on financial market authorities around the world to issue warnings about the digital currency.

“I think that all the authorities can do is put up the sign from Dante’s Inferno — ‘abandon hope all ye who enter here.’

“I think that’s probably what’s needed and I think that probably needs to be done by the Fed but also by the SEC and the Bank of England and the ECB at the same time.

“It’s hard to see any solid rationale for that move …

“I think the central banks are anxious about it …”