IMF Unveils Crypto Plan | Financial forum

[ad_1]

The International Monetary Fund (IMF) has laid out a nine-point action plan for how countries should treat crypto assets, with the first point being a plea not to give cryptocurrencies such as bitcoin the status of course. legal.

The global lender of last resort said its board discussed a paper, “Elements of Effective Policies for Crypto Assets,” which provides “guidance to IMF member countries on key elements of a response.” appropriate policy for crypto assets,” Aljazeera reported on Friday.

Such efforts have become a priority for authorities, the fund said, after a number of exchanges and crypto assets collapsed over the past two years, adding that doing nothing was now “unsustainable”. .

The main recommendation was to “safeguard monetary sovereignty and stability by strengthening monetary policy frameworks and not to grant crypto assets official currency or legal status.”

The IMF had hit El Salvador at the end of 2021 when the Central American country became the first to adopt Bitcoin as legal tender, a decision since copied by the Central African Republic.

Other advice on Thursday’s list, which comes as G20 policymakers meet in India, included protecting against excessive capital flows, adopting unambiguous rules and tax laws regarding crypto assets, and developing and enforcing oversight requirements for all crypto market participants.

Countries should also establish international agreements to strengthen supervision and enforce regulations, the IMF added, as well as put in place ways to monitor the effect of crypto on the stability of the global monetary system.

Outlining its board’s assessment, the IMF said directors welcomed the proposals and agreed that widespread adoption of crypto assets “could undermine the effectiveness of monetary policy, circumvent management measures capital flows and exacerbate fiscal risks”.

They “generally agreed,” too, that crypto assets should not be granted official currency or legal tender status, and while strict asset bans were “not the best option,” a few admins thought that they should not be excluded.

[ad_2]