IMF wants to add Georgian Bitcoin exports in foreign trade balance

IMF wants to add Georgian Bitcoin exports in foreign trade balance

The Georgian Bitcoin exports have sparked a new debate. The International Monetary Fund (IMF) and Georgia saga continue with a cryptocurrency twist. The country is grappling with regulatory issues, and the IMF is taking matters seriously. Now, it has suggested that Georgia adds the income it generates from cryptocurrency mining and trading operations into its foreign trade balance figure.

Georgia has extensive cryptocurrency operations going on its soil. Statistically, it stands at fourth place globally in digital currency mining operations. So, the IMF suggestion is only relevant given the context of substantial mining-related income generated by Georgian Bitcoin exports. The Georgian government must include this figure into the trade balance to give an accurate picture of its financial sector.

IMF representatives have already undertaken meetings with the leading cryptocurrency firms in the country. They were asked by IMF officials to report the number of foreigners who purchase cryptocurrencies from them. To put it, they were asked to explain their Bitcoin exports operations and the subsequent income generated from Georgian Bitcoin exports.

IMF wants the accountability of Georgian Bitcoin exports

The IMF is working with the Georgian government to improve its financial sector reporting initiatives, including statistics. They are being guided on how to promote foreign trade balance reporting methodology. Thus, cryptocurrency accountability has emerged as a natural addition to international trade due to its extensive spread in Georgia.

The contribution of cryptocurrency to the national GDP must also be reported accurately. The government should closely monitor the industry since it has a decent contribution to the GDP and export figures. IMF Deputy Division Chief Mercedes Vera-Martin, said that cryptocurrency mining operations have a mixed effect on the country’s economy. If cryptocurrency is exported in large numbers, Georgian Bitcoin exports must be a part of the foreign trade balance.

She mentions that Bitcoin mining requires the import of strategic mining hardware and specialized equipment. These are reported well in the accounts. However, when the export commodity, i.e., Bitcoin, is not included in the figures, the trade balance is distorted. To accomplish this task of calculating Georgian Bitcoin exports, the IMF has presented a questionnaire for the finance department of Georgia to estimate the export of Bitcoin from the country.

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Gurpreet Thind

Written by Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.