IMF Integrates Cryptocurrencies into Global Balance of Payments
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Story Highlights IMF acknowledges Bitcoin as a non-produced, non-financial asset. Staking rewards are classified as equity dividends under the new system. IMF paper offers global recommendations on cryptocurrency classification. The International Monetary Fund (IMF) has officially included Bitcoin and other virtual currencies in its newly updated Balance of Payments Manual (BPM7), a major step toward the global acceptance of virtual currencies. Bitcoin falls under the category of non-produced non-financial assets, whereas authorities categorize other crypto tokens from underlying platforms like Ethereum and Solana under the equity holding category. This follows a growing recognition from global institutions of the expanding reach of cryptocurrencies. What started out as an experiment in 2009 has turned into a multi-trillion-dollar market, piquing the interest of governments and financial institutions globally. The recent efforts of the Trump administration to promote the use of blockchain, such as its intention to merge USAID with blockchain technology and create a crypto reserve, have further catalyzed institutional interest. IMF Establishes Crypto Reporting Standards Globally Based on the IMF’s new model, cryptocurrencies are sub-categorized into fungible and non-fungible assets. Authorities treat Bitcoin and other tokens with no offsetting liability as capital assets, whereas they include reserve-backed stablecoins under financial instruments. Moreover, they now treat staking rewards for crypto investors as equivalent to equity dividends, further cementing the increasing similarities between digital and traditional finance. The IMF also responds to staking rewards and blockchain validation services under its revised structure. Authorities can now accord rewards derived from staking functions equivalent treatment to dividends on equity, based on the size and intent behind the investor stake. They will also classify blockchain validation activities like staking and mining under production services, including them in export and import figures for computer services. Crafted in close consultation with more than 160 countries, the BPM7 guide is…
