IMF Updates Global Standards to Include Bitcoin – Dennis Porter Clears Up ‘Digital Gold’ Confusion

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Recently, the IMF (International Monetary Fund) has updated its balance of payments standards to account for the increasing importance of digital assets. For the first time, cryptocurrencies like Bitcoin (BTC) are officially recognized in global economic reports.

An analyst, Ashcrypto, shared a post on X (formerly Twitter) claiming that the IMF had called Bitcoin “digital gold.” This created a buzz in the crypto community. However, Dennis Porter, a well-known voice in the space, quickly questioned this interpretation, asking, “Can anyone point to exactly where the IMF says Bitcoin is ‘digital gold’?”

After diving into the IMF’s statement, Dennis clarified the source of the confusion. The IMF actually referred to Bitcoin as a “new digital asset designed to be used as a means of payment or act as a store of value.”

He remarked that the phrase “designed to be” is crucial here and it doesn’t necessarily mean that the IMF is officially endorsing Bitcoin as “digital gold” or guaranteeing its stability or value like gold. It’s more about recognizing Bitcoin’s potential, not confirming it as a proven asset.

The “store of value” idea for Bitcoin is debated due to its volatility. Unlike gold, which has a long history of stability, Bitcoin’s price can fluctuate significantly.

The IMF’s latest update to the Balance of Payments Manual (BPM7) now includes cryptocurrencies like Bitcoin (BTC) in its global economic framework. This is the first time the IMF has provided clear guidelines on how digital assets should be tracked in global financial stats, marking a big step for crypto in the financial world.

Cryptos like Bitcoin are classified as non-productive capital assets, while stablecoins are treated as financial instruments. The update also changes how cross-border crypto transactions, staking, and mining are tracked, with mining and staking now recorded as services in a country’s computer services exports/imports.

This update is a big step in officially recognizing digital assets as part of the global economy, helping to track and regulate them better in the future.