International Monetary Fund chief Christine Lagarde said bitcoin deserves a crackdown that uses its own blockchain technology to fight “fire with fire.”

Lagarde, on a blog post on the IMF website, said that the blockchain technology behind bitcoin is an “exciting advancement” but that crypto assets have perils. She said that, while the idea of a decentralized currency appeals to many people, the anonymity also encourages criminal activity like money laundering or financing of terrorism.

For those reasons, Lagarde called for more regulatory frameworks to address the problems. While the IMF has tried to help its member countries with the issues, Lagarde said “more needs to be done to get a handle on the emerging threat.”

“We can begin by focusing on policies that ensure financial integrity and protect consumers in the crypto world just as we have for the traditional financial sector,” Lagarde wrote. “Indeed, the same innovations that power crypto-assets can also help us regulate them. To put it another way, we can fight fire with fire.”

Bitcoin Under Fire

Bitcoin’s value faltered Tuesday, down with the digital currency sliding lower to under $9,000 per coin against the dollar earlier in the session, but recovering to about $9,158.76, up 0.6% in late-day trade. (See also: Bitcoin Price Limps Along as Misery Index Flashes Buy Signal.)

Meanwhile, in another opinion piece on bitcoin published Tuesday, chair of Switzerland’s Bank of International Studies (BIS) Markets Committee co-authored an article with Benoit Couere, a member of the executive board of the European Central Bank.

In it, the leading European policymakers said that bitcoin cannot fill the void in an increasingly cashless society. Essentially, they said that a central bank digital currency could keep banks liquid as cash disappears, it would also disrupt the financial system. The consequences for bank business models and financial stability would need to be carefully parsed," they wrote. (See also: Why Bitcoin Is the New Stock Market Indicator.)

Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. 

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