The International Monetary Fund (IMF) recently provided technical assistance to Andorra, a country located between France and Spain, on the recording of Bitcoin (BTC) transactions. This assistance was part of a mission conducted by the IMF in September 2023 to enhance the country’s balance of payments statistics, focusing on economic transactions between residents and non-residents.

Andorra, known for its ski resorts and tax-haven status, sought help on various topics, including the recording of cryptocurrency transactions. The IMF report highlighted the guidance on recording Bitcoin-type crypto assets and upcoming changes in international standards.

The Andorran Financial Authority (AFA) informed the IMF that banks in Andorra require approval to record Bitcoin and crypto asset transactions, although no banks have sought this approval yet. The IMF recommended that the AFA monitor crypto asset transactions until September 2024 to compile macroeconomic statistics effectively.

In a related development, a recent IMF study suggested that digital currencies could benefit Pacific Island countries (PICs) with unique currency needs. While cautioning against unbacked cryptocurrencies as national currency, the IMF proposed a regional approach to digital money to address scalability and economic volatility issues.

The IMF advised PICs to proceed cautiously with digital currency initiatives and delay plans for a central bank digital currency (CBDC) due to readiness concerns. This measured approach aims to build confidence in domestic monetary systems and explore publicly supported digital assets like CBDCs.

As the IMF continues to provide technical guidance on cryptocurrency transactions and digital money, it underscores the importance of strategic, informed decisions to navigate the evolving financial landscape. For more news and updates on global cryptocurrency developments, visit Global Crypto News.

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