IMF Nine Point Crypto Action Plan

February 24, 2023

The International Monetary Fund recently unveiled a Crypto Action plan to safeguard monetary sovereignty in the world. The action plan will help countries to frame their crypto policies. The following are the nine points:

Details how a country should treat cryptocurrencies. That is, they should choose the currency very carefully in providing the legal status
Establish international arrangements to increase enforcement regulations
set up methodologies to monitor the impact of cryptocurrency
Strengthen monetary frameworks
Guard against excessive capital flows
make laws on cryptocurrencies and assets;
impose taxes on organizations using crypto
Be cautious as the crypto assets may circumvent capital flow management and also may undermine the monetary policy’s efficiency
Do not grant legal status or official status to cryptocurrency

The IMF quoted El Salvador as an example. The country lost more than 60 million USD during its bitcoin experiment. It spent 375 million USD in implementing the experiment. Due to this, the country faced an economic crisis and a very high deficit. The country implemented bitcoin.

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