IMF updates balance of payments standards to reflect digital assets

The International Monetary Fund (IMF) has updated its Balance of Payments Manual to reflect the growing role of digital assets. The new edition, BPM7, introduces classifications for cryptocurrencies and token-based assets in global economic reporting.

Cryptocurrencies like Bitcoin are now categorized as non-produced, non-financial assets. These assets, which have value but aren't tied to a production process, are classified as capital assets, with no financial liabilities attached.

This update improves the tracking of cross-border crypto flows through capital account reporting.

Distinction Between Tokens and Financial Instruments

The manual differentiates tokens into fungible and nonfungible types, further distinguishing them based on whether they carry liabilities. Cryptocurrencies without liabilities, such as Bitcoin, are treated as non-produced assets, while stablecoins backed by liabilities are classified as financial instruments.

Tokens associated with platforms like Ethereum or Solana may resemble equity holdings and are now treated similarly to foreign equity investments if the holder resides in a different country. This aligns digital tokens with traditional financial reporting systems.

Recognition of Crypto-Based Services

The IMF also addresses staking and mining activities, now treated as service production. Mining and staking validations are recorded as computer service exports or imports. Staking rewards may be classified as income, depending on the nature of the holding.

Global Implementation and Future Use

The BPM7 manual is the result of consultations with over 160 countries and is expected to guide official statistics for years to come. Each jurisdiction will decide how to apply the standards.

The IMF aims to enhance transparency around digital asset flows and their broader economic impact. The updated manual provides a unified framework to incorporate crypto activities into national accounts across borders.