IMF Proposes Including Bitcoin and Crypto in National GDP Metrics

The International Monetary Fund, a key financial institution based in Washington, D.C., has released recommendations to modernize how countries measure their economies by incorporating the value of Bitcoin and other cryptocurrencies into national accounting frameworks. The proposed update to the System of National Accounts, a global standard for evaluating economic activity since 1947, was unanimously approved by the United Nations Statistical Commission in March. This revision, the sixth in the system’s nearly nine-decade history, aims to reflect the rapid rise of digital technologies, including cryptocurrencies, artificial intelligence, and digital services, in calculating a nation’s gross domestic product and overall wealth.

The updated framework addresses the growing economic significance of crypto assets, which have posed unique challenges for statisticians. Bitcoin, for instance, consumes substantial energy, comparable to the electricity usage of a country like Argentina. However, since it does not involve traditional goods or services, it has not been included in GDP calculations until now. The new system classifies certain crypto assets as “non-produced nonfinancial assets,” allowing their value to be reflected in a country’s national wealth, offering a more comprehensive view of economic activity.

Modernizing Economic Measurement for a Digital Age

This revision comes at a critical time as the global economy, valued at $114 trillion, evolves rapidly with technological advancements. The IMF, in collaboration with the United Nations, World Bank, European Commission, and Organisation for Economic Co-operation and Development, has worked to ensure the system keeps pace with digitalization. The inclusion of crypto assets is particularly significant for public policy, as these assets, while currently a small fraction of global wealth, could influence financial stability, tax policies, and regulatory frameworks in the future. By integrating Bitcoin and similar assets into national accounts, governments can make more informed decisions to foster economic growth and address emerging risks.

Beyond cryptocurrencies, the updated framework provides guidance on measuring other digital economy components, such as artificial intelligence, cloud computing, and e-commerce. These additions aim to address gaps in traditional metrics, which may explain why reported productivity growth in advanced economies has lagged despite rapid digital advancements. The system also introduces a clearer definition of artificial intelligence for use in national accounts, ensuring consistency in how digital innovations are tracked.

The update extends beyond digitalization to address lessons from the global financial crisis, offering improved methods to capture financial risks and the complexities of non-bank financial institutions. It also enhances the understanding of multinational enterprises’ operations, particularly how they manage intellectual property and global value chains. These changes align with revisions to the Balance of Payments Manual, ensuring consistency in recording cross-border transactions.

Another key improvement is the increased focus on net domestic product, which complements GDP by accounting for the depreciation of fixed capital and the depletion of natural resources. This metric, often 10% to 25% lower than GDP, provides a clearer picture of economic sustainability, particularly for countries reliant on extractive industries. By emphasizing sustainability, the updated system helps policymakers better assess long-term economic health.