IMF now believes Bitcoin holds real economic value, necessitating the need for the SNA update

The International Monetary Fund, United Nations, World Bank, European Commission, and Organisation for Economic Co-operation and Development worked to update the new System of National Accounts (SNA) to fully incorporate emerging technologies, digital services, and intangible assets.

According to the IMF, the revised SNA will factor in digitalization, trade, government finances, and financial innovation, providing governments with better tools to guide economic growth, job creation, and crisis response. It also insisted that economies adapt to digital transformation.

In its statement, the bank warned, “Measurement across the $114 trillion global economy must keep up even as the pace of change accelerates. If it doesn’t keep pace, central banks and finance ministries will end up setting monetary or fiscal policy based on incomplete, outdated, or inaccurate information.”

IMF believes Bitcoin holds real economic value, necessitating the need for the SNA update

Now in its sixth iteration, the SNA has served nearly nine decades as the international standard for tracking national metrics like output, income, spending, investment, financial flows, and wealth.

With the latest update, the IMF hopes to better capture the impact of digitalization, which is often underreported. The international bank noted that while digital transformation has accelerated, productivity figures in many developed countries have slowed, raising questions about the adequacy of existing measurement frameworks.

Additionally, the IMF argued that Bitcoin holds real economic value and consumes as much electricity as Argentina. Yet, it remains excluded from GDP calculations because it does not produce conventional goods or services. As a result, the revised standards will also extend to crypto assets, to better align with their increasing status within a new world economy.

It further stated that some experts have found ways to classify particular crypto assets as “non-produced nonfinancial assets,” meaning they can be accounted for in measures of national wealth.

The SNA will include recommendations to curb financial risks and instability

The updated SNA also calls on nations to develop comprehensive metrics for sectors like AI, cloud computing, e-commerce, and digital platforms.

It also offers a unified definition of artificial intelligence to promote consistent treatment in national economic data. Furthermore, it includes recommendations to better monitor financial risks and instability, given the rise of non-bank institutions.

It also offers a more detailed view of major multinational firms’ production and profit distribution practices. According to the IMF, the information will enable national accounts to more effectively capture the output and earnings of multinational companies that outsource production but keep control of core assets like design, branding, and IP. 

The framework also elevates net domestic product (NDP) as a key metric alongside GDP. NDP goes a step further by deducting capital depreciation and natural resource depletion—factors overlooked in standard GDP figures. NDP generally trails GDP by 10% to 25%, with the gap growing significantly in nations that rely heavily on extractive sectors like mining.

The IMF has so far offered technical assistance, expert guidance, and training programs to facilitate the transition to the revised SNA and BPM frameworks by 2029–30.

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