Brazil Central Bank Moves to Follow IMF Crypto Classification Guidelines
The Central Bank of Brazil has adopted the classification of cryptocurrencies being sold or purchased under the International Monetary Fund (IMF) guidelines.
According to the announcement from the Brazil Central Bank, IMF guidelines will now be followed. Cryptocurrencies will be classified as non-financial products and will be classified as goods on its balance sheet.
The external sector statistics methodology to the IMF Statistics Department recommended that Bitcoin and other cryptocurrencies should be classified as produced non-financial assets and should be put under valuables.
The report states, “These assets come into existence as outputs of a production process (i.e., through mining and/or project development) under the control, responsibility, and management of a specific institutional unit using inputs of labor, capital, goods, and services.”
Given that selling and purchasing cryptocurrencies involves the execution of foreign exchange contracts, the central bank considers crypto assets in their export and import statistics. Brazil being a net importer of crypto assets, will contribute to lowering the trade surplus on its balance sheet.
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