Taxing Stablecoins

By Christophe J Waerzeggers, Irving Aw, Jess Cheng

May 25, 2023

Preview Citation

Format: Chicago

Christophe J Waerzeggers, Irving Aw, and Jess Cheng. Taxing Stablecoins, (USA: International Monetary Fund, 2023) accessed December 22, 2024

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.

Subject: Currencies, Digital currencies, Economic sectors, Income and capital gains taxes, Money, Tax policy, Taxes, Technology, Value-added tax, Virtual currencies

Keywords: Crypto assets, Currencies, Digital currencies, Digital payments, Global, IMF Fintech Note 2023/002, Income and capital gains taxes, Income tax, Income tax tax treatment, Payment token, Stablecoins, Taxing Stablecoins, Tokens, Value-added tax, VAT treatment, Virtual currencies

Publication Details

Pages:

23
Volume:

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DOI:

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Issue:

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Series:

Fintech Notes No 2023/002
Stock No:

FTNEA2023002
ISBN:

9798400227226
ISSN:

2664-5912

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