The International Monetary Fund (IMF) has published new guidelines urging governments to avoid recognizing Bitcoin and other cryptocurrencies as legal tender.
Such moves were already undertaken by El Salvador, which digitalized its economy in controversial circumstances and while taking criticism from the IMF.
The Elements of Effective Policies for Crypto Assets seeks to set out basic guidance and appropriate policy suggestions insofar as crypto assets are involved.
The IMF has been following global events with some concern, explaining that the collapse of prominent crypto exchanges and assets has been a point of concern for the global watchdog.
The watchdog urged countries to first seek to protect their monetary sovereignty and stability.
To do that, cryptocurrencies must not be granted a legal status as a tender or an official currency.
The IMF addressed a conference held by the G20 in Indonesia on Thursday and elaborated on other important aspects of the crypto industry and countries’ response to it.
The organization urged nations to adopt unambiguous tax rules, excessive capital flows and enforce oversight requirements.
The IMF also urged countries to work together and establish international bodies that allow them to improve supervision and help collaborate on enforcing regulation.
There have already been cases of companies that have impacted consumers and citizens globally, specifically the collapse of Terraform Labs and FTX, both of which had global reverberations.
Most attendees agreed with the IMF’s first proposal that crypto should not be granted a legal status, but there was some level of hesitance with some representatives admitting that it was “not the best option”, but not ruling out the idea completely.
Countries are already planning blockchain digitalization with the UK preparing to roll out a digital pound within 10 years.
Looking for your next crypto casino? Check out: Bitcasino or FortuneJack.