The boss of the world’s leading financial institution has said it’s “inevitable” cryptocurrencies such as Bitcoin will come under government control.
Christine Lagarde, managing director of the International Monetary Fund (IMF), said the organisation wanted to stop digital currencies being used by criminals to launder cash.
”It's inevitable. It's clearly a domain where we need international regulation and proper supervision,” she said, speaking at the World Government Summit in Dubai at the weekend.
“There is probably quite a bit of dark activity,” she added, in an interview with CNNMoney.
Crypto bubble has burst
The cryptocurrency bubble appears to have burst, with the price falling steadily as governments around the world crack down on cryptocurrency exchanges.
In January, leading cryptocurrency expert Bobby Lee, co-founder of Chinese bitcoin exchange BTCC shut down by authorities last year, said there was a “global pattern to suppress Bitcoin”.
“This is how it’s been for the last five years. This is how it’s going to be for the next five years. So get used to it,” said Lee, who is brother of Litecoin founder Charlie Lee.
Bitcoin is currently trading at $8,669, down 4.3% from $9,058 on Saturday (10 February).
Etherium, the second biggest by market capitalisation, is trading at $873, down down 2.9% from $906 on Saturday, while Ripple, the third biggest cryptocurrency is down from $1.17 on Saturday to $1.05, a fall of 10%.