IMF Board: Crypto Shouldn’t Be Legal Tender, But Bans Not Ideal

• The IMF’s Executive Board has agreed that cryptocurrencies should not be granted legal tender status.
• Banco do Brasil has enabled the payment of taxes with cryptocurrencies for its customers.
• Bitfy CEO and Founder Lucas Schoch shares insights into the crypto adoption in Brazil.

IMF: Crypto Shouldn’t Be Legal Tender

The International Monetary Fund’s (IMF) Executive Board has stated that cryptocurrency should, in general, not be granted legal tender status due to the risks it poses to monetary policy, tax collection, financial stability and consumer protection. The board called for countries to clarify tax treatment and align with global standards.

Brazilian Bank Enables Crypto Tax Payments

Banco do Brasil (BB), Brazil’s largest public bank, has enabled the payment of taxes with cryptocurrencies for its customers who have deposited their crypto holdings with Bitfy – a startup specializing in blockchain solutions in which BB’s corporate venture capital arm has invested.

Bitfy CEO on Crypto Adoption in Brazil

Bitfy CEO and Founder Lucas Schoch also shared his insights into the state of crypto adoption in Brazil after the launch of BB’s service.

Alternatives to Outright Bans

The IMF leadership noted that outright bans on cryptocurrency are not ideal but shouldn’t be ruled out either. They suggested targeted restrictions instead as an alternative approach to regulation.

Conclusion
Overall, there is an agreement from both industry players like Bitfy’s CEO Lucas Schoch and international organizations such as the IMF that cryptocurrency should not be granted legal tender status at this time due to its potential risks associated with it – but alternative solutions are being explored through initiatives like BB’s new service enabling crypto tax payments in Brazil.