Mark Jones
LONDON (Reuters) – The IMF has laid out a nine-point action plan for how countries should treat crypto assets, the first of which calls for Do not give cryptocurrencies like Bitcoin legal tender status.
The global lender of last resort said its executive committee discussed a document titled “Elements of Effective Policy for Cryptoassets,” which provides “guidance for IMF members” on crypto Key elements of an appropriate policy response for an asset.
Such efforts have become a priority for authorities after the collapse of many cryptocurrency exchanges and assets over the past few years, the fund said, adding that doing nothing now would be “unsustainable.”
The top recommendation is to “maintain monetary sovereignty and stability by strengthening the monetary policy framework, and not to grant official currency or legal tender status to encrypted assets. “
The IMF later attacked El Salvador when the Central American nation became the first to adopt Bitcoin as legal tender, a move It was later followed by Central African Republic.
Other recommendations on Thursday’s list were made by G20 policymakers when they met in India, including preventing excessive capital flows, Adopt clear tax rules and laws for crypto-assets, as well as develop and enforce supervisory requirements for all cryptocurrency market participants.
Countries should also establish international arrangements to strengthen Supervise and enforce regulations and establish methods to monitor the impact of cryptocurrencies on the stability of the global monetary system.
The IMF, in outlining its Executive Board’s assessment The directors welcomed the proposals and agreed that widespread adoption of crypto assets “could undermine the effectiveness of monetary policy, circumvent capital flow management measures, and exacerbate fiscal risks,” said the directors.
They also “generally agree” that crypto assets should not be granted official currency or legal tender status, although a strict ban on assets “is not the best option” and several directors argued that they should not be excluded.
