IMF Working Papers

On Cross-Border Crypto Flows: Measurement Drivers and Policy Implications

By Pamela Cardozo, Andrés Fernández, Jerzy Jiang, Felipe D Rojas

December 20, 2024

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Format: Chicago

Pamela Cardozo, Andrés Fernández, Jerzy Jiang, and Felipe D Rojas. "On Cross-Border Crypto Flows: Measurement Drivers and Policy Implications", IMF Working Papers 2024, 261 (2024), accessed March 6, 2025, https://doi.org/10.5089/9798400294501.001

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Cross-border crypto flows (CBCFs) are not systematically measured and are poorly understood. After defining CBCFs and the channels through which they materialize, we review the various approaches to measure them through two case studies. We also quantify the dynamics and drivers of CBCFs through a push/pull factor SVAR model. We find an increasingly large volume of CBCFs, although considerable heterogeneity remains across estimates. Furthermore, CBCFs are more sensitive to push factors than regular capital flows. Our findings call for accurate and comprehensive measurement and monitoring of CBCFs and the need to rethink capital account restrictions in a more digitalized world.

Subject: Balance of payments, Capital flows, Central bank bills, Central Banks, Foreign direct investment, Foreign exchange

Keywords: Brazil CBCFs, Capital account restriction, Capital account restrictions, Capital flows, Central bank bills, Cross-border flows, Crypto assets, Drivers of CBCFs, Foreign direct investment, Global, Measurement, Monitoring of CBCFs, Policy implication, Push-pull factors

Publication Details

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