Bitcoin skyrocketed to a whopping $20,000 shortly before Christmas but prices have steadied around $11,000 since the announcement.
But Mrs Lagarde said more governments and banks will seek to further control the way bitcoin is used to protect financial stability.
She said: "The anonymity of it is likely to facilitate money laundering, dark money moving around and things that no one is happy about if you’re looking for financial stability and transparency of financial transactions.
Bitcoin skyrocketed to a whopping $20,000 shortly before Christmas but prices have steadied around $11,000 since the announcement.