• The International Monetary Fund’s (IMF) Executive Board has stated that cryptocurrency should generally not be granted legal tender status.
• Banco do Brasil (BB), Brazil’s largest public bank, has enabled the payment of taxes with cryptocurrencies.
• The IMF leadership noted that outright crypto bans are not ideal but should not be ruled out either.
IMF ‚Generally Agreed‘ Crypto Shouldn’t Be Legal Tender
The International Monetary Fund’s (IMF) Executive Board has released a statement expressing its opinion that cryptocurrency should generally not be granted legal tender status. The board – consisting of 24 directors elected by the IMF’s member countries – was presented with a staff paper warning of the risks crypto poses to monetary policy, tax collection, financial stability and consumer protection. They agreed that while outright crypto bans are not ideal, they should not be ruled out either and recommended countries clarify their tax treatment and align with global standards.
Banco do Brasil Enables Payment of Taxes with Cryptocurrency
Banco do Brasil (BB), Brazil’s largest public bank, has enabled the payment of taxes with cryptocurrencies. This service is only available to customers who have deposited their crypto holdings with Bitfy, a blockchain solutions startup in which BB’s corporate venture capital arm has invested. Bitfy CEO and Founder Lucas Schoch shared his insights into the initiative as well as the current state of crypto adoption in Brazil.
Crypto Regulation Recommendations from IMF Leadership
The IMF leadership suggested targeted restrictions on certain types of activities related to cryptocurrencies instead of an overall ban since such a ban could lead to people turning to other channels or jurisdictions for transactions involving digital assets. They also advised countries to consider adopting global standards for anti-money laundering and countering terrorist financing regulations when it comes to digital asset activities. Finally, they emphasized the need for clear rules regarding taxation around these kinds of activities in order to ensure revenue collection remains consistent across all jurisdictions.
Bitfy CEO & Founder Shares Insights Into Crypto Adoption in Brazil
Bitfy CEO and Founder Lucas Schoch discussed his experience developing this new banking infrastructure in Brazil which allows customers to pay taxes using cryptocurrency via BB’s platform. He believes this is just one way that blockchain technology can help bring more financial inclusion in Latin America by providing access to basic banking services for people who previously didn’t have them or were underserved by traditional banks. He further mentioned how he sees potential for similar initiatives across other industries such as real estate and healthcare where blockchain solutions could offer faster transaction speeds at lower costs compared to traditional methods today.
The IMF Executive Board expressed its opinion that cryptocurrency should generally not be granted legal tender status due its associated risks including those related to monetary policy, tax collection, financial stability and consumer protection among others. At the same time there are opportunities like those offered by Banco do Brasil enabling citizens in Brazil use cryptocurrency for paying taxes through their partner Bitfy as well as potential applications across other industries due low transaction costs offered by blockchain technology compared traditional methods today .