The International Monetary Fund (IMF) has taken a significant step in recognising Bitcoin ($BTC). Reports suggest that the global financial institution is now classifying Bitcoin as “Digital Gold” and may even be adding it to its reserves.
New regulations outlined in the IMF’s latest Balance of Payments Manual (BPM7) include Bitcoin in global financial records, treating it similarly to gold or land.
Some believe that Bitcoin could even be added to the IMF’s Special Drawing Rights (SDR) basket, though this remains unconfirmed.
Bitcoin advocate, Max Keiser, claims the IMF is quietly moving towards crypto adoption, despite its previous opposition to Bitcoin.
IMF’s new classification for Bitcoin
On 20 March, the IMF published the seventh edition of its Balance of Payments Manual (BPM7). The updated manual sets new guidelines on how Bitcoin and other digital assets should be recorded in global economic statistics.
Bitcoin and similar cryptocurrencies are now classified as “non-produced non-financial assets”. Other types of digital tokens are treated more like equity investments.
The term “non-produced assets” refers to resources that are not created through traditional economic activities, such as manufacturing or construction.
Instead, they exist naturally and have economic value. Examples include land, forests, and mineral deposits.
Under the new framework, digital assets are divided into fungible and non-fungible tokens, with further distinctions based on whether they have corresponding liabilities.
Bitcoin, which does not have a corresponding liability, is classified as a capital asset. On the other hand, stablecoins—digital assets backed by reserves—are treated as financial instruments.
The IMF explained, “Crypto assets without a counterpart liability designed to act as a medium of exchange (e.g., Bitcoin) are treated as non-produced non-financial assets and recorded separately in the capital account”.
This means that transactions involving Bitcoin across borders will now be recorded as acquisitions or disposals of non-produced assets.
For tokens linked to specific platforms—such as Ethereum or Solana—the classification changes. If an investor owns these tokens but resides in a different country from the issuer, they are treated like foreign equity investments.
For instance, if a UK investor holds Solana tokens issued in the US, the investment would be recorded as “crypto assets in capital”.
Another key update in the BPM7 manual addresses staking rewards and transaction validation activities. The IMF now considers staking rewards to be similar to stock dividends.
As a result, they should be recorded as income in the current account, depending on the size and purpose of the holding.
The IMF also states that activities involved in validating crypto transactions—such as mining or staking—should be treated as the production of services. This means they will be included in a country’s exports and imports of computer services.
IMF’s stance on El Salvador’s Bitcoin adoption
The IMF had previously expressed concerns about Bitcoin adoption in some countries. In particular, it has advised El Salvador to reconsider aspects of its Bitcoin policy.
In 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender. Since then, the IMF has raised concerns about the risks this decision could pose to the country’s financial stability.
Following this, the IMF’s Director of Communications, Julie Kozack, spoke at a press briefing about ongoing discussions with El Salvador.
“Addressing risks arising from Bitcoin is a key element of these discussions”, Kozack stated. She emphasised that the IMF is encouraging the country to scale back the scope of its Bitcoin law.
The IMF has proposed several changes, including stricter regulations on Bitcoin use, increased oversight, and reduced exposure of the public sector to Bitcoin.
These recommendations are part of broader efforts to stabilise El Salvador’s economy and manage potential financial risks.
El Salvador’s economy has been growing at a steady rate of 3% per year. However, the IMF remained concerned about how Bitcoin might affect the country’s financial health in the long run.
Kozack noted that the IMF is working towards an agreement with El Salvador on a new economic support programme. This programme aims to ensure “macroeconomic stabilisation and adjustment” while also promoting economic growth and necessary reforms.
In August last year, it also issued a statement highlighting the need for El Salvador to improve its fiscal policies. Bitcoin was a central issue in these discussions.
The statement read, “Progress has been made in the negotiations toward a Fund-supported program, focused on policies to strengthen public finances, boost bank reserve buffers, improve governance and transparency, and mitigate the risks from Bitcoin”.
Essentially, the IMF fears that if Bitcoin is not properly managed, it could make El Salvador’s financial situation more unstable.
So far, the worst-case scenarios have not played out. However, the IMF continues to stress the importance of transparency and risk management in handling Bitcoin.
Discussions between the IMF and El Salvador are ongoing, as both sides try to find a balance between economic stability and the role of Bitcoin in the country.
However, the IMF’s latest guidelines mark a significant shift in how global financial institutions view Bitcoin. By classifying it as a non-produced non-financial asset and acknowledging its role in cross-border transactions, the IMF is giving Bitcoin a status similar to that of gold or land.
While it previously warned countries like El Salvador about the risks of heavy Bitcoin reliance, its new framework shows a growing recognition of digital assets in the global economy.
This change could pave the way for further institutional acceptance of Bitcoin, reinforcing its position as a legitimate capital asset on the international stage.
