Bitcoin Official Acknowledgement – IMF Integrates BTC and Crypto Into Global Financial Standards

Key Points

• The IMF released the 7th edition of its Balance of Payments Manual (BPM7).
• Bitcoin is seen as a medium of exchange and a store of value, while stablecoins are seen as financial instruments.

Bitcoin and the crypto industry mark another important achievement in the quest for global adoption and recognition. IMF released the seventh edition of its Balance of Payments Manual (BPM7) and it incorporated BTC and digital assets into the balance of payments framework.

Headquartered in Washington DC, the International Monetary Fund (IMF) is an essential financial agency of the UN, and an international financial institution funded by 191 member countries.

The IMF’s recognition of Bitcoin and crypto signals that the financial agency takes the industry seriously, paving the way for increased mainstream adoption.

IMF Includes Bitcoin and Crypto Into Payments Balance Framework

IMF’s seventh edition of the Balance of Payments and International Investment Position Manual brings changes to the financial agency’s balance of payments framework.

According to the newly released documents, crypto assets without a counterpart liability designed to act as a medium of exchange, like Bitcoin, are treated as “non-produced nonfinancial assets” and they are recorded separately in the capital account.

The framework divides digital assets into fungible and nonfungible tokens, differentiating them according to a corresponding liability.

IMF Classification Meaning

Bitcoin and similar crypto assets without liabilities are categorized as capital assets, and stablecoins, which are backed by liabilities, are treated as financial instruments.

Bitcoin and Crypto Classification

This means that Bitcoin and similar crypto do not have a corresponding liability or claim against an issuer, as no entity is obligated to redeem Bitcoin or maintain its value.

This is why Bitcoin is categorized as a nonfinancial capital asset, similar to commodities like gold, meaning that the IMF sees Bitcoin more like a store of value.

Stablecoins Classification

Stablecoins with liabilities are classed as financial instruments, as they are typically backed by reserves such as cash, bonds, or other assets.

They are also issued by an entity that holds the obligation to redeem them as a fixed value.

Due to the fact that the issuer has a liability to maintain the peg to fiat money, stablecoins are treated as financial instruments, more like bank deposits or money market funds.

Why IMF Classification Matters

IMF’s clear classification highlights a key difference between Bitcoin and stablecoins:

• Bitcoin is seen more as a store of value or an investment asset, rather than money or a financial instrument.
• Strablecoins are treated like financial products which could imply stricter regulation.

This classification aligns with the wider views on how regulators and institutions differentiate:

• Decentralized, permissionless assets like Bitcoin
• Centrally issued digital assets like stablecoins

Other IMF Mentions

In its report, the IMF also addressed staking rewards earned from holding tokens – these may resemble equity dividends and should be recorded under current account income, according to the holding’s size and purpose.

Transactions involving the validation of crypto asset transfers, including mining or staking, will be treated like the production of services, being added to computer services exports and imports.

Bullish Times Ahead

The IMF’s latest report brings more clarity to the industry’s integration into the global financial ecosystem, paving the way for increased adoption of Bitcoin and crypto.

The important report comes amidst growing institutional adoption for BTC and huge support from the US President, Donald Trump.

IMF brings more reasons to remain bullish on Bitcoin and crypto’s future.