Crypto Not Ready for Official Currency Status: IMF

• The International Monetary Fund (IMF) has warned against giving cryptocurrencies the status of legal tender or official currency as it could lead to adverse effects on a nation’s monetary sovereignty and stability.
• The agency proposed nine elements in order to create effective policies for crypto assets, including minimizing its use for official payments and avoiding guaranteeing crypto to fiat conversions.
• The IMF also suggested that governments build stronger institutions and create transparent, coherent and consistent policies in order to reduce the substitution of fiat into cryptocurrencies.

IMF Warns Against Giving Crypto Official Currency Status

The International Monetary Fund (IMF) has warned against granting cryptocurrencies the status of legal tender or official currency as it can cause significant problems with regards to monetary, sovereign and financial stability. To combat this, the agency has proposed nine elements which should be taken into account when creating effective policies for crypto assets.

Minimizing Use For Official Payments

One element suggested by the IMF is that governments should minimize its use for official payments in order to safeguard against volatility issues. It also suggested avoiding guaranteeing crypto-fiat conversions so as not to expose traditional financial institutions too much risk from these volatile assets.

Building Stronger Institutions And Policies

The IMF believes that building stronger domestic institutions and creating solid policies are key to reducing people’s inclination to convert their fiat into cryptocurrencies instead of other foreign currencies. The agency recommends creating a transparent, coherent and consistent Monetary Policy Framework (MPF) in order to ensure credibility and trust in the traditional system.

Adverse Effects On Monetary Sovereignty

According to the UN financial agency, granting crypto official currency or legal tender status can lead to negative impacts on a nation’s monetary sovereignty and stability due to its potential exposure of traditional financial systems to these volatile assets. Therefore, it is important for governments take proper precautions when considering such moves as they could have far reaching implications on their economy if not done correctly.


To sum up, the IMF’s position on giving cryptocurrencies legal tender status or official currency is clear: doing so can cause serious problems with regards to monetary sovereignty and stability that must be addressed before any such move is made. Governments should therefore take great care when crafting their cryptocurrency policy frameworks if they want avoid any potential pitfalls associated with such an action