Ren Garcia 
The World Bank, the Federal Reserve, and the IMF have come up with a new plan that is catching the world’s attention every day with its harsh decisions and statements against cryptocurrencies.
The latest news comes from the IMF’s cryptocurrency action plan. Although some softening compared to previous statements cannot be ignored, it emphasizes that tough measures can still be taken.
IMF Releases 9-point Action Plan
The IMF has published a nine-point action plan for cryptocurrencies. The plan emphasizes that other cryptocurrencies, especially Bitcoin, should not be given legal status.
The IMF has published a nine-point action plan on how member countries should deal with cryptocurrencies. The first element of the IMF action plan states that cryptocurrencies like Bitcoin should not be recognized as legal tender.
Why Are They Not Recognized As Legal Tender?
According to the statement, the Executive Board discussed the document titled “Elements of Effective Policies for Crypto Assets,” which advises IMF member countries on the key components of an acceptable policy response to crypto assets.
The Goal Is To Maintain Monetary Independence And Stability
The key recommendation for member countries is to “preserve monetary sovereignty and stability by strengthening the monetary policy framework and not classifying cryptoassets as official money or legal tender.”
Other recommendations made by the IMF at the G20 Finance Ministers and Central Bank Governors meeting in India included measures to address excessive capital flows into cryptocurrencies through financial regulation and legislation, as well as the development of prudential requirements for all crypto market participants.
Why is the IMF Taking Such a Step?
First, experts believe that institutions such as the IMF are cautious because they fear not being able to control cryptocurrencies. Moreover, it is certain that cryptocurrencies will completely dominate banking transactions in the next 10 years. So, it is becoming increasingly clear that cryptocurrencies are seen as a very serious problem. Nevertheless, this situation seems to be overcome in the medium term.
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