The Executive Board of the International Monetary Fund (IMF) has reviewed the Crypto Assets Policy Paper published by the Fund and expressed its agreement with the proposed policy framework. Paper, with name “Elements of Effective Policy for Crypto Assets” developed a framework of nine policy principles that address macro-financial, legal, regulatory and international coordination issues.
The proposed principles were mostly quite broad and emphasized analysis, monitoring and surveillance. The paper specifically stated that the proposals should be taken up by “directors”. The first policy contained a specific command. It cost:
“Ensure monetary sovereignty and stability by strengthening monetary policy frameworks and do not grant crypto-assets the status of official currency or legal tender.”
The executive board expressed its agreement with the paper’s proposals and specifically backed its position on cryptocurrencies as legal tender, saying members “generally agreed”. The board too he repeated the “same activity, same risk, same regulation” principle and “emphasizing that the Fund could serve as a thought leader in further analytical work” on crypto-assets.
IMF Discusses Policy for Crypto Assets, Calls for ‘Robust Macroeconomic Policy’
‘[…] widespread adoption of crypto-assets could undermine the effectiveness of monetary policy.
‘[…] significant consequences for the international monetary system
They are afraid.. pic.twitter.com/tSraLxg1lM
— CR1337 (@cryptonator1337) February 23, 2023
The document was dated January 2023 and the executive board met to discuss it on 8 February, but the paper and the proceedings were announced to the public on 23 February.
Related: The IMF calls for tighter regulation of cryptocurrencies in Africa as the industry evolves
The IMF has expressed its opposition to the use of cryptocurrencies as legal tender, especially after El Salvador adopted Bitcoin as its official currency in September 2021. El Salvador was released on February 10 and he was controlled by the crypto community. The fund also has urged the adoption of greater regulation of cryptocurrencies.
IMF looks more favorably on central bank digital currency (CBDC) than cryptocurrencies. She announced in September that she did work on an interoperable device CBDC platform.
