Crypto Classification IMF Guidelines Adopted By Brazil’s Central Bank

Many best cryptocurrency news sites report about the Central Bank of Brazil moving to classify the bought or sold cryptocurrency assets, according to the International Monetary Fund (IMF) guidelines. The new crypto classification IMF guidelines were officially announced as part of the Brazil’s central bank plans on August 26.

According to the new classification under the IMF standards, traded cryptocurrencies will be classified as non-financial products. As such, they will be accounted as goods on the central bank and its balance sheet. For those of you who don’t know, a central bank balance sheet is (just like a regular bank balance sheet) designed to sum up its financial position and is made up of assets, equity and liabilities.

Ever since purchasing and selling cryptocurrency involves the execution of foreign exchange contracts, the central bank considers selling and buying cryptocurrency assets in their export and import statistics. The crypto classification IMF guidelines show that Brazil, as a net importer of crypto assets, is planning to lower the trade surplus on its balance sheet.

According to news sources, the classification of cryptocurrencies as good is significant in the country. Their recognition as property would additionally make them eligible to be used as a payment mechanism.

The central bank also noted that the crypto classification IMF guidelines were recommended by The Balance of Payments Statistics Committee which is an advisory committee to the IMF Statistics Department focusing on external sector statistics methodology.

As we previously reported in the altcoin news, the chief economist at IMF named Gita Gopinath recently joined other officials in recommending that regulators need to be vigilant in observing and taking action against the proposed cryptocurrency behind Facebook, the Libra coin.

“If you look particularly at countries that are not reserve currency countries, would this lead to backdoor dollarization? […] All of these questions (and) whether there will be enough checks and balances in place to prevent money laundering … are very important,” Gopinath said in an interview with Reuters while addressing her concerns on Libra.

All in all, the latest cryptocurrency news show that Brazil is one of the countries pivoting strong towards cryptocurrency – and the recent crypto classification IMF guidelines are a great step for both the country and the traders in it.