IMF against making crypto legal tender, issues action plan
The IMF is arguing that countries should not give cryptocurrencies such as bitcoin legal tender status
Is anyone investing in cryptocurrency anymore?
Primetime Partners co-founder and chairperson Alan Patricof provides insight on investing and cryptocurrency and the push for electric vehicles on 'The Claman Countdown.'
The International Monetary Fund is recommending that countries not give cryptocurrencies like Bitcoin status as legal tender.
The IMF made that point as a part of a nine-point action plan for how countries should treat crypto assets.
The financial agency's Executive Board provided guidance to IMF member countries in the discussion of a paper, "Elements of Effective Policies for Crypto Assets."
The IMF said action is necessary after the collapse of a several crypto exchanges and assets over the last couple of years.
IMF CHIEF EXPECTS TO KEEP 2023 GLOBAL GROWTH FORECAST STEADY
The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S. (REUTERS/Yuri Gripas/File Photo / Reuters Photos)
The top recommendation was to "safeguard monetary sovereignty and stability by strengthening monetary policy frameworks and do not grant crypto assets official currency or legal tender status."
The IMF came out against El Salvador in late 2021 when the Central American country became the first to adopt bitcoin as legal tender.
Representations of cryptocurrencies Bitcoin, Ethereum and DogeCoin are placed on PC motherboard in this illustration. (REUTERS/Dado Ruvic/File Photo / Reuters Photos)
CLICK HERE FOR FOX BUSINESS' REAL-TIME CRYPTOCURRENCY PRICING DATA
The Central African Republic has done the same.
.Other recommendations included:
- Guarding against excessive capital flows
- Adopting unambiguous tax rules and laws around crypto assets
- Developing and enforcing oversight requirements for all crypto market actors
The IMF also recommended countries establish international arrangements to enhance supervision and enforce regulations, as well as set up ways to monitor crypto's impact on the stability of the global monetary system.
Reuters contributed to this report.