Crypto can’t be legal tender; blanket ban not easy: IMF-FSB paper

Crypto assets should not be granted official currency or legal tender status, the much-awaited synthesis paper by the International Monetary Fund (IMF) and Financial Stability Board (FSB) has said ahead of the G20 leadership summit under India’s presidency. However, the report has argued against a blanket ban on activities linked to crypto assets, explaining that such a move can be costly as well as technically demanding to enforce.

Central banks should avoid holding crypto assets in their official reserve as they pose a risk to monetary and global financial stability, according to the synthesis paper. Stressing the need for an unambiguous tax treatment of crypto assets, it has advised countries to safeguard monetary sovereignty.