IMF exec board endorses crypto policy framework, including no crypto as legal tender
Feb 23. 2023
By Derek Anderson
The principles are broad and general, with the exception of the stand against crypto as legal tender, which the IMF has repeatedly expressed to El Salvador.
The executive board of the International Monetary Fund (IMF) has assessed a paper on crypto asset policy published by the fund and expressed its agreement with its proposed policy framework. The paper, titled “Elements of Effective Policies for Crypto Assets,” developed a framework of nine policy principles that addressed macrofinancial, legal and regulatory, and international coordination issues.
The proposed principles were mainly quite broad, emphasizing analysis, monitoring and guarding. The paper explicitly says the proposals should be taken up by “the Directors.” The first principle did contain a concrete injunction, reading:
“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 expressed its agreement with the proposals in the paper and specifically endorsed its position on crypto as legal tender, saying members “generally agreed” with it. The board also repeated the principle of “same activity, same risk, same regulation” and “emphasized that the Fund could serve as a thought leader in further analytical work” on crypto assets.
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