Recently, the Central Bank of Brazil has proceeded to categorize selling or buying cryptocurrency resources as per IMF (International Monetary Fund) rules. Brazil’s national bank declared its choice just recently. Besides, with the new type of classification as per IMF standards, exchanged cryptocurrencies will be categorized as non-financial products and accordingly, will be taken into account as goods on the central bank’s accounting report.
A note published by the Central Bank of Brazil recently has authoritatively recognized cryptocurrencies such as Bitcoin as assets, as Brazil has been importing Bitcoin, a move that has been described as “reducing the trade surplus” in its annual report.
Advertisement
As indicated by local news outlet Portal do Bitcoin, the nation’s central bank implemented the guidelines from the IMF (International Monetary Fund) to categorize cryptocurrencies and will currently be adding cryptocurrency statistics when checking the nation’s exports and imports. Moreover, it also stated that digital currency mining is presently set to be viewed as a productive procedure.
Because they are digital, active crypto products have no customs registration, but purchases and sales by residents of Brazil imply the conclusion of foreign exchange contracts,
stated the agency. “Cryptocurrency mining activity is, therefore treated as a productive process.”
Furthermore, the Brazilian cryptocurrency news outlet remarks that Roberto Campos Neto, the president of the nation’s central bank, has commented something regarding cryptocurrency earlier. In July, Campos had guaranteed the growth of new technologies and markets which will enable the central banks to improve. Awareness of cryptocurrencies as property would allegedly make them qualified to be utilized as a payment instrument.
Nonetheless, a central bank accounting report is the same as an ordinary bank’s accounting report, gives a summary of its financial position, and is comprised of equity, assets, and liabilities. Moreover, executing foreign exchange agreements includes selling and buying of cryptocurrencies; the central bank considers selling and purchasing crypto resources in their import and export statistics.
Advertisement
Besides, because Brazil is a net importer of crypto resources, this has added to lowering down the trade surplus on its accounting report. Additionally, the central bank states that these categories were endorsed by the Balance of Payments Statistics Committee, an advisory panel to the IMF Statistics Department that centers on external sector statistics strategy.
