IMF opposed using crypto as legal tender in their crypto policy framework
Press Release

IMF opposed using crypto as legal tender in their crypto policy framework

written by John Murphy | February 28, 2023

IMF opposed the use of cryptocurrency as a legal tender in their wide and all-encompassing principles stated in their latest ‘crypto policy framework’.

The International monetary fund’s (IMF) executive board reviewed a report published by them on crypto asset policy. They endorsed the suggested crypto policy framework in it. The article titled “Elements of Effective Policies for Crypto Assets” addressed macro-financial, legal and regulatory, and international coordination issues, the authors proposed a framework of nine policy principles.

The suggested principles were clear and quite broad, placing emphasis on analysis, monitoring, and guarding. The paper explicitly stated that the directors must adopt the made proposals.

There was specific instruction in the paper:

“Safeguard monetary sovereignty and stability by strengthening monetary policy frameworks and do not grant crypto assets official currency or legal tender status.”

The executive board stated that the majority of the members generally agreed with the proposals made in the paper along with the position of cryptocurrency as a legal currency.

Additionally, the board stressed the potential of the IMF to lead the way in further analytical work on crypto assets and also repeated the principle of “same activity, same risk, same regulation”.

IMF has advocated for regulating crypto even more. The position of the Fund on the use of crypto as legal is precise for a time now, especially after El Salvador announced Bitcoin as its official currency. The crypto community flipped even his latest statement.

The Fund is more inclined toward central bank digital currency rather than cryptocurrency. They have also announced that they are working on developing an open CBDC platform by September.