What is the IMF’s BPM7 Reform?
The planned reform by the International Monetary Fund (IMF), known as the "Balance of Payments and International Investment Position Manual" (BPM7), aims to update international financial statistics to better reflect current economic realities. A central aspect of this reform is a more comprehensive recording and classification of digital assets, particularly cryptocurrencies such as Bitcoin.
When Will the BPM7 Reform Take Effect?
The global consultation period for the BPM7 draft ran from July to September 2024, resulting in over 400 comments from more than 100 international stakeholders. In November 2024, the final version was approved by the responsible IMF Committee (BOPCOM). A preliminary "White Cover Version" was published in March 2025, with the official final version expected by late 2025 or early 2026.
When Do the Changes Come Into Force?
Although BPM7 has already been published, the IMF recommends that member countries implement the new standards by 2029–2030. The IMF will accompany this process with additional guidelines and technical support.
How Does the BPM7 Reform Classify Bitcoin and Other Cryptocurrencies?
The BPM7 draft provides detailed guidelines for classifying cryptocurrencies. According to paragraph 16.81 of the official BPM7 document, cryptocurrencies are initially divided into fungible and non-fungible crypto assets:
Fungible crypto assets (like Bitcoin) are divisible and interchangeable. This means that one Bitcoin unit is identical to another and can easily be subdivided into smaller units.
Non-fungible crypto assets (NFTs), on the other hand, are unique and indivisible.
Fungible cryptocurrencies, including Bitcoin, are further classified into three categories (see paragraph 16.81 of the BPM7 document):
General medium of exchange without liabilities (e.g., Bitcoin):These crypto assets are decentralized and exist without any central counterparty or issuing institution.What does this mean in practice? Bitcoin is considered a standalone, non-produced, and non-financial asset, similar to commodities or precious metals. Such assets are specifically recorded in a country's capital account.
Platform- or network-specific payment tokens:Tokens used within a specific platform (e.g., payment tokens on certain trading platforms).
Security tokens:These tokens digitally represent traditional financial instruments such as debt securities or shares and always involve a liability on the part of the issuer.
Additionally, the document explicitly states in section 5 ("Classification of Financial Assets and Liabilities") that due to the absence of liabilities, Bitcoin is not treated as a financial claim but as a "nonproduced nonfinancial asset." Thus, Bitcoin officially receives an asset classification equivalent to precious metals such as gold (see BPM7, Chapter 5, "Means of Payment").
What Specific Changes Will the BPM7 Reform Bring for Bitcoin and Cryptocurrencies?
With this new classification, the IMF officially acknowledges for the first time that Bitcoin and similar cryptocurrencies represent a distinct asset class. Activities such as Bitcoin mining or staking will henceforth be classified as service production, highlighting their economic significance.
Furthermore, Bitcoin is explicitly classified as a "means of payment." According to the IMF's definition (Chapter 5, see picture), this category includes all instruments directly used for payments—now explicitly including Bitcoin, alongside cash and credit cards. This significantly strengthens Bitcoin's position in international payment transactions but may also lead to stricter regulatory and tax requirements.
What Does This Reform Mean for Crypto Investors?
For investors, the BPM7 reform primarily brings clarity and regulatory certainty. Now officially recognized and defined, Bitcoin could attract increased investment from institutional players like banks and asset managers due to reduced regulatory risks. At the same time, governmental authorities may monitor and tax Bitcoin transactions more closely. Investors should therefore proactively review their regulatory and tax obligations.
Is the BPM7 Reform Good or Bad for Bitcoin?
Overall, the BPM7 reform is fundamentally positive for Bitcoin and other cryptocurrencies. It affirms Bitcoin’s role as a recognized international means of payment and a distinct asset class. While clearer regulatory frameworks might lead to tighter short-term controls, the reform ultimately sets the stage for broader institutional and private acceptance of Bitcoin in the long run.
Stay informed! Don't miss out on important updates—share this article and subscribe to our newsletter!
Document BPM7 Reform:
Other recent articles: KULR Technology's Bitcoin Treasury Strategy: An In-Depth Analysis
Comments