IMF says crypto should not be legal tender + other stories for the week

Temitope Akintade
IMF says crypto should not be legal tender + other stories for the week

The International Monetary Fund (IMF) laid out a nine-point action plan for how countries should treat crypto assets on Thursday, and the first plea is not to give cryptocurrencies legal tender status.

The IMF’s executive board discussed an “Elements of Effective Policies for Crypto Assets” paper that provided “guidance to IMF member countries on key elements of an appropriate policy response to crypto assets.”

The IMF decided to come up with advice for its member countries following the damage caused by the downfall of certain exchanges like FTX.

Other advice on Thursday’s list included guarding against excessive capital flows, adopting unambiguous tax rules and laws around crypto assets, and developing and enforcing oversight requirements for all crypto market actors.

IMF says crypto should not be legal tender + other stories for the week
The International Monetary Fund has unveiled a nine-point plan for how countries should manage crypto assets [File: Yuri Gripas/Reuters]

However, the African region continues to dance harder in the global crypto party, and more countries continue implementing structures to incorporate the nascent technology into their systems. It was Zambia’s turn this week. 

Per reports, the Bank of Zambia and the country’s securities regulators are currently testing the technology to regulate cryptocurrencies, a Zambian government minister said. An article published on a governmental ministry’s website argued that Zambia needs to regulate this “revolutionary technology” because it encapsulates “the future the country desires to achieve.”

Also, the infamous founder of the FTX exchange, Sam Bankman-Fried, was slapped with additional criminal charges from federal prosecutors, according to a new 12-count indictment unsealed in the United States District Court on Thursday. 

Here are major crypto stories from around the world this week 

Spotify is testing web3 features 

Spotify is expanding its Web3 efforts by testing token-enabled playlists in several key markets. According to reports on Wednesday, users can access token-enabled playlists from Overlord, Fluf, Moonbirds and Kingship with their NFT wallets.

IMF says crypto should not be legal tender + other stories for the week

Overlord, a Web3 gaming ecosystem, announced its partnership with Spotify. The token-enabled community-curated playlist from Overlord can be accessed via Web3 wallets of those who hold the Creepz NFTs on Spotify. Only Android users from the United States, United Kingdom, Germany, Australia and New Zealand can unlock the playlists.

While Fluf and Moonbirds didn’t share any details on their partnership with the streaming service publicly, Kingship confirmed its participation in a pilot on Twitter.

On Thursday, the Executive Board of the International Monetary Fund released a statement stating that cryptocurrency should not be given legal tender status. Notably, a legal tender status would mean that businesses are legally obligated to accept a certain cryptocurrency as a means of payment.

The statement affirmed that crypto assets should not be official currency or legal tender to preserve monetary sovereignty and stability. The statement further called for countries to specify their tax treatment and conform to global standards.

Zambia to regulate crypto 

Felix Mutati, Zambia’s Science and Technology Minister, has discussed the need for crypto regulation in the country. Mutati announced that the Bank of Zambia and the Securities and Exchange Commission are testing the technological requirements for crypto regulations. He believes crypto is the nation’s future, but revolutionary technology needs proper regulations.

Zambia to regulate crypto

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The government is building the required digital infrastructure to achieve its target of $4.7 million in digital payments. It also wants to attract investments to become an African tech hub. Mutati says:

Zambia has created magnetism that attracts investments, and it is one of the countries in Africa that is becoming a must-be place for investment.”

Finally, the minister is optimistic that “cryptocurrency will be a driver for financial inclusion and a change maker for Zambia’s economy.”

Before this development, Vitalik Buterin, the co-founder of Ethereum, visited Zambia’s Finance Minister with other Web3 stakeholders.

Titanic artefacts to be tokenised 

Real-world artefacts from the famous Titanic wreckage are set to be tokenized as NFTs through a new partnership using blockchain technology. 

A three-way partnership involving RMS Titanic (a company that holds the exclusive rights to recover artefacts from the Titanic and its wider debris field from the bottom of the North Atlantic Ocean), Hong Kong-based Venture Smart Financial Holdings and Web3 firm Artifact Labs will headline the process to begin tokenising the precious artefacts to unlock a myriad of Web3 functionalities.

These NFTs are touted to offer exclusive benefits to collectors, including VIP events and exhibitions, seminars with historians and other exclusive experiences. The NFTs will create a digital means to interact with RMST content outside of physical Atlanta and Las Vegas exhibitions.

A statement from RMST president Jessica Sanders highlighted the initiative’s intent to preserve the Titanic’s legacy and artefacts through digital innovations like NFTs and blockchain technology:

As the salvor-in-possession of the Titanic wreck site, we are determined to ensure that the Ship’s artifacts are preserved in perpetuity and accessible to future generations. We believe that moving into the digital space allows us to reach a broader audience with quality programming that educates and inspires.”

SBF hit with new charges

A new superseding indictment against Sam Bankman-Fried was unsealed on Thursday. The indictment contains 12 charges, including eight counts of fraud, money laundering, and other charges related to the collapse of the now-bankrupt crypto exchange, FTX.

Sam Bankman-Fried finally arrested in the Bahamas 

Read also:

Tether (USDT) emerges as the biggest beneficiary of BUSD’s troubles

According to the new indictment, Bankman-Fried exploited the trust FTX customers placed in him and his exchange by stealing FTX customer deposits and using billions of dollars in stolen funds for various purposes. Prosecutors allege that Bankman-Fried used the stolen customer funds to plug losses at Alameda Research, his hedge fund.

The case is ongoing, and Bankman-Fried is presumed innocent until proven guilty in a court of law. FTX has not yet released a statement on the matter.

That is all from us this week, see you next week

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