The Future of Accountancy – a closer look at the challenges of cryptocurrencies
Monday 10 June 2019
Over the centuries, money has evolved. From bartering with necklaces and gems to using coins, paper money and now plastic cards. We’re now in the next phases of the evolution of money as we move from electronic money to cryptocurrencies.
Even though cryptocurrencies reached a peak in 2017/2018, the appetite still exists. A future of digital currencies could make cities and businesses smarter but will require large innovations in the finance and accounting world. If you’re keen to pursue and build a career in the accountancy profession, having a good understanding of the Bitcoin and cryptocurrency market will be vital as you will need to account for all transactions going through this space.
A challenge in the future will be tracking all cryptocurrency transactions and the assets. If cryptocurrency goes mainstream, there will be millions of transactions every day and businesses will need a way to track and manage these. Accountants won’t be able to rely on spreadsheets or other tools when the volume of transactions on a daily basis are so high. Smarter solutions will be required to manage these transactions and accounting operations. It is likely that automated tools and blockchain will come together to help solve these issues.
As much as cryptocurrencies offer some exciting opportunities, remember that there are also inherent dangers involved. Criminals are using them in ever increasing numbers to launder money and commit financial crime. Accountants have a duty to ensure that all transactions are subject to appropriate due diligence with enhanced checks being undertaken for more high-risk transactions.
It’s obvious that cryptocurrencies will play an important part in the economy in the future. As it moves from the niche to the mainstream, start being proactive, map out where all your accounts and wallets are so you have a clear viewpoint of your profile. Regulations and compliance are changing at a fast rate, ensure you stay on top of all the latest trends as we move into a more digital future.
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