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IMF Recognizes Cryptocurrencies in Global Economic Data for the First Time
The International Monetary Fund (IMF) has taken a significant step by updating its balance of payments standards to account for the growing influence of digital assets. The IMF has officially included cryptocurrencies like Bitcoin in the global economic data, marking the first time it has done so.
As part of its seventh edition of the Balance of Payments Manual (BPM7), the IMF has categorized Bitcoin and similar cryptocurrencies as non-productive assets in the balance of payments. This move is a significant recognition of the growing impact of cryptocurrencies on the global economy.
The IMF’s new framework splits digital assets into fungible and non-fungible tokens, based on whether they have associated liabilities. Notably, Bitcoin and other tokens without liabilities are treated as capital assets, while stablecoins backed by liabilities are considered financial instruments.
According to the updated standards, cross-border crypto transactions involving assets like Bitcoin will be tracked as acquisitions or sales of non-produced assets in the capital account. On the other hand, tokens tied to a platform, such as Ethereum or Solana, may be treated like equity holdings in the financial account if the owner is from a different country than the token’s origin.
For instance, if a UK investor holds Solana tokens from the US, it would be treated like owning foreign stocks, recorded as “equity crypto assets.” The IMF highlights that, despite using cryptography, these assets are similar to standard equity when it comes to ownership rights.
In addition, the IMF has also taken note of staking and crypto yields. It acknowledges the complexity of staking and crypto yields, noting that rewards from holding tokens could be treated like equity dividends and recorded as income, based on the size and purpose of the holdings.
This update is crucial in helping countries better track the economic impact of digital assets. The IMF now treats activities such as mining or staking, which help validate crypto transactions, as services. These will be included in computer services exports and imports.
The updated manual was created with input from over 160 countries, and it is expected to guide global economic data. While its application may differ by country, this move marks a significant step toward recognizing the economic impact of digital assets worldwide.
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Source: https://coinpedia.org/news/imf-updates-standards-to-include-cryptocurrencies-in-balance-of-payments/
