The Executive Board of the International Monetary Fund (IMF) has reviewed a crypto asset policy document published by the Fund and has expressed its agreement with the proposed policy framework. The document, titled “Elements of Effective Policies for Crypto Assets,” developed a framework of nine policy principles that addressed macrofinancial, legal and regulatory issues, and international coordination.
The proposed principles were mainly quite broad and emphasized analysis, monitoring and surveillance. The document explicitly stated that the proposals had to be assumed by “the Directors”. The first principle contained a specific mandate. It said like this:
“Safeguard monetary sovereignty and stability by strengthening monetary policy frameworks and not grant crypto assets the status of official currency or legal tender.”
The Executive Committee expressed its agreement with the proposals in the document, and specifically endorsed its position on the crypto asset as legal tender, stating that members “were in general agreement” with it. The board also repeated the principle of “same business, same risk, same regulation” and “emphasized that the Fund could serve as a thought leader in future analytical work” on crypto assets.
IMF discusses policies for crypto assets, calling for ‘robust macroeconomic policies’
‘[…] Widespread adoption of crypto assets could undermine the effectiveness of monetary policy’
‘[…] significant implications for the international monetary system’
They are scared.. pic.twitter.com/tSraLxg1lM
— CR1337 (@cryptonator1337) February 23, 2023
The document was dated January 2023 and the executive board met to discuss it on February 8, but the document and the meeting were released to the public on February 23.
The IMF has made its opposition to the use of cryptocurrencies as legal tender well known, especially since El Salvador adopted Bitcoin as its official currency in September 2021. Its latest statement on El Salvador was published on February 10 and was criticized by the cryptocurrency community. The fund has also urged the adoption of greater regulation of cryptocurrencies.
The IMF views central bank digital currency (CBDC) more favorably than cryptocurrency. In September it announced that it was working on an interoperable CBDC platform.
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