Taxing Stablecoins
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Summary:
This Fintech Note specifically considers the challenges that tax law systems face to achieve neutrality in taxing transactions in one specific type of crypto asset: stablecoins. Stablecoins are a category of crypto assets that aim to maintain a stable value relative to a specified asset or to a pool of assets, such as sovereign currencies. In this way, they are designed to address the problem of volatility in the prices of crypto assets; price volatility generally makes these assets poor candidates to be a store of value and is one of the main impediments against their more widespread adoption as a means of payment. The prospect of a more widespread adoption of stablecoins warrants a closer look at their tax treatment and associated challenges.
Series:
Fintech Notes No 2023/002
Subject:
Currencies Digital currencies Economic sectors Income and capital gains taxes Money Tax policy Taxes Technology Value-added tax Virtual currencies
Frequency:
occasional
English
Publication Date:
May 25, 2023
ISBN/ISSN:
9798400227226/2664-5912
Stock No:
FTNEA2023002
Format:
Paper
Pages:
23
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