The Executive Board of the International Monetary Fund (IMF) discussed a board paper sets forth a framework of nine elements that can help members develop a comprehensive, consistent, and coordinated policy response to crypto assets.
According to the press release, IMF board directors "generally agreed that crypto assets should not be granted official currency or legal tender status in order to safeguard monetary sovereignty and stability", highlighting fiscal risks posed by crypto assets including contingent liabilities to the government. Directors stated that crypto-associated fiscal risks should be fully disclosed as part of countries’ fiscal risk statements, and the applicability of tax regimes should be clarified.
Directors emphasized the importance of fully aligning the framework with the initiatives and standards set by the standard-setters.
“Directors agreed that strict bans are not the first-best option, but that targeted restrictions could apply to limit crypto risks, though some board members think outright bans should not be ruled out,” the statement said. "The growing adoption of crypto assets in some countries, the extra-territorial nature of crypto assets and its providers, as well as the increasing interlinkages with the financial system, motivate the need for a comprehensive, consistent, and coordinated response."
Regulations shouldn’t stifle innovation, and the public sector can benefit from the underlying technology of crypto assets, the statement added.
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