The International Monetary Authority (IMF) has started to make its move against cryptocurrencies and their adoption.
Until the end of 2022, the IMF was seen sharing its concerns about the adoption of cryptocurrencies. It even strongly opposed the decision made by El Salvador when it adopted Bitcoin (BTC) as a legal tender.
Now it seems that the IMF has decided to take matters into its own hands and deal with cryptocurrencies on its own.
IMF’s Recent Developments Including Crypto
Just recently, the IMF published a policy pertaining to cryptocurrencies. The policy pertaining to the cryptocurrency framework and its adoption.
The global financial fund has worked on the entire policy pertaining to cryptocurrencies and their adoption framework. By doing this, IMF is aiming to limit the expansion of the cryptocurrency industry.
Most importantly, the regulator wants to ensure that the adoption of cryptocurrencies is barred as legal tender.
To make it happen, the regulator has started proposing an agreement that goes alongside the policy framework of cryptocurrencies.
Nine Principles by the IMF
In the new policy that the IMF has proposed, there are principles governing the policy. The paper published by the regulator addresses international coordination and regulatory, legal, and macro-financial issues.
As expected with the IMF, it has kept the principles as broad as possible, leaving the rest of the work and efforts to the respective regulators.
In the framework paper, it has emphasized that the enforcers must ensure that they are putting in all their efforts. They have to make sure they continue guarding the interests of the locals and the businesses.
In addition to that, they have to ensure that they continue monitoring and keep carrying out analysis to assess the impact of crypto in their jurisdictions.
For now, the principles are with the internal board at the IMF. It has been proposed to the directors and it is awaiting their response.
If it is accepted, then it will be presented to the countries who are acquiring bail-out packages from the IMF. The international regulator wants to enforce the policy on the countries looking to gain monetary support.
Although the IMF has set up a 9 nine-principle framework, it does not seem that it has any concrete injunction.
Main Principle of the IMF
The recent action taken by the IMF may become a huge problem for the cryptocurrency industry and its mainstream adoption.
This is because the most prominent and stressed principle in the framework puts a bar on the legal tender status of cryptocurrencies.
The IMF wants to put a stop to the same ideology that resulted in El Salvador adopting Bitcoin as a legal tender.
This is the reason why it is putting a lot of pressure on countries not to adopt Bitcoin or altcoins as legal tender.
It means that the countries will never be able to consider cryptocurrencies as legal or official currencies. Therefore, these countries will always be subject to getting taken down by governments or regulators.
The final Decision is Pending
For now, the decision is with the board members at the IMF. They will be reviewing the principles and demanding any amendments to the principles if needed.
As per the internal sources, most of the members have no issues with the principles. They have generally agreed with the policies and the paper, which means that they may vote in favor of the framework.
If that happens, then the adoption of cryptocurrencies would be limited to a certain level. The future of cryptocurrencies can be ensured only when they reach absolution, which is being adopted legally by the countries.
From the looks of it, the IMF is strongly against that notion and it wants to bar the expansion of the cryptocurrency industry.
The IMF wants full control over the financial and economic decision-making of any country that borrows money from them. As cryptocurrencies encourage decentralization and independence, the regulator wants to put an end to it.