IMF Updates Framework to Include Bitcoin, Ethereum
1min read The International Monetary Fund (IMF) has made a landmark update to its global economic reporting framework by incorporating Bitcoin and Ethereum. This significant change is part of the latest iteration of the IMF's Balance of Payments Manual (BPM7), which was last updated in 2009. The new manual now includes digital assets, reflecting their growing importance in the global economy.
The BPM7 categorizes digital assets into fungible and non-fungible tokens, providing clarity on their economic impact. Bitcoin, for instance, is classified as a non-produced non-financial asset, which affects the capital account. Stablecoins, which are backed by underlying assets, are considered financial instruments. Platform tokens like Ethereum (ETH) and Solana (SOL) may qualify as quasi-equity instruments when held internationally. The IMF also recognizes staking and yield-generating activities as forms of dividend income, while mining services are categorized as exportable computer services.
This update is particularly relevant for regions where cryptocurrencies are increasingly used as a means of transaction and investment. By including these assets in its reporting framework, the IMF aims to provide a more comprehensive view of global economic activities. This move is expected to enhance transparency and accuracy in global economic data, which is crucial for policymakers and investors. The IMF is committed to advancing the adoption of BPM7 and the new System of National Accounts by 2029-2030.
The inclusion of Bitcoin and Ethereum in the IMF's reporting framework marks a significant shift in how cryptocurrencies are perceived within financial frameworks. This development underscores the growing acceptance of digital assets in mainstream finance and is likely to influence how other international organizations and governments approach the regulation and integration of these assets into their financial systems. The update is expected to have far-reaching implications for the global economy, providing a more accurate reflection of the role that digital assets play in financial transactions and investments. This move is a significant step towards greater transparency and accountability in the global financial system.
Ask Aime: How will Bitcoin and Ethereum's inclusion in the IMF's BPM7 impact the global economy?
