The National Bank of Austria president Ewald Nowotny has urged governments to regulate and tax bitcoin, The Daily Mail reported.

Speaking with the German daily Sueddeutsche Zeitung, Nowotny, who is also a member of the ECB governing council, underscored the need for a value-added tax on bitcoin.

"One ought to apply what the basic rule is in any other financial transaction: everyone involved should reveal their identity," Nowotny said. “We need a value-added tax on bitcoin, since it's not a currency.”

Bitcoin has grabbed the attention of monetary authorities across the globe particularly after the recent spike in its price to near $20,000.

Back in 2015, the European Court of Justice had ruled that bitcoin transactions should be exempt from VAT. It said that bitcoin transactions "are exempt from VAT under the provision concerning transactions relating to currency, bank notes and coins used as legal tender."

Nowotny, however, sees bitcoin as an instrument for financial crimes such as money laundering and an object of speculation.

"It can't be allowed that we've just decided to stop printing 500-euro notes to fight money laundering, that we've slapped strict rules on every tiny savings club, and then have to watch people blithely laundering money around the globe with bitcoin," Nowotny said.