The Zhitong Finance App learned that the International Monetary Fund (IMF) Executive Committee said in a statement on Thursday that, generally speaking, cryptocurrencies should not be granted the status of legal tender. They pose risks to monetary policy, taxation, financial stability, and consumer protection.

According to the IMF, directors generally believe that in order to maintain monetary sovereignty and stability, crypto assets should not be granted the status of official currency or legal tender, and countries should clarify tax treatment and be consistent with global standards.

The IMF also stated, “Although some directors believe that the possibility of a complete ban on cryptocurrencies should not be ruled out, the directors agreed that imposing a strict ban on cryptocurrencies is not the best option, but targeted measures can be implemented to limit the risks caused by cryptocurrencies. Given the increasing popularity of crypto assets in some countries, issues relating to the extraterritorial jurisdiction of crypto assets and their providers, and the increasing links between cryptocurrencies and the financial system, the world needs to take a comprehensive, consistent, and coordinated response. However, the IMF believes that regulations should not stifle innovation, and that governments can benefit from basic digital technology.

The IMF previously feared that cryptocurrencies might be used to evade capital controls imposed by the government, and discouraged countries such as El Salvador from making Bitcoin an official currency.