As the crypto market evolves, central banks are striving to give it a sturdy foundation. The Atlantic Council’s central bank digital currencies (CBDCs) tracker shows that more than 115 countries are exploring and experimenting with CBDCs.
According to FM magazine, CBDCs offer investors more stability because they’re tied to the value of a country’s currency, and they’re overseen by the issuing bank. The People’s Bank of China launched its own digital yuan, the e-CNY, in January 2022, and all 500 trial accounts were claimed in two days. Nigeria launched its e-naira in October 2022, and both South Africa and Ghana are in pilot phases of CBDCs. The Bank of England is also considering a digital pound, but a decision to introduce one has not been made.
CBDCs and cryptoassets could affect how we buy products and how businesses manage transactions. As expansion is likely, management accountants are primed to develop strategies for effective and compliant digital recordkeeping.
Raise the game with digital records as a CGMA designation holder
Management accountants know how money flows into and out of a company, so they have a unique opportunity to create processes for CBDCs and digital transactions.
Top priority is accurate recordkeeping.
Records are invaluable when it comes to tracking important details. When cryptoassets are received and spent, management accountants record each value to monitor gains and losses. Accurate records are imperative when overseeing these developing digital assets.
With sharp eyes and keen analytical skills, management accountants monitor market values closely because price changes could affect the balance sheet. Businesses may also need to invest in technologies and software to handle new payment types from e-wallets.
Cybersecurity, digital costing, blockchain, and digital strategy are just some of the relevant technical skills a successful finance professional will need to manage cryptoassets effectively and safely.
Embracing technology and cultivating skills to become future-ready are part of the journey to achieve the Chartered Global Management Accountant® (CGMA®) designation, which conveys to the world proficiency in technical, business, digital, people, and leadership skills, enabling a competitive advantage.
As you achieve the designation, you’ll gain confidence in your ability to forecast, assess risks more accurately, and transition companies into accepting cryptoassets.
Technological shifts in accountancy
Cryptoassets will cause a shift in the accounting profession as finance professionals articulate value of digital assets and clearly record transactions.
How cryptoassets are handled is nuanced and will require strong financial knowledge. Whilst cryptoassets aren’t tangible like quid, they’re still viewed as property with value. Your expertise in accounting principles still apply to how cryptoassets are recorded and tracked, but you also need keen risk awareness.
Digital assets come with unique risks — safety and security are two of the biggest concerns. Monitoring and verifying transactions will be a top priority to protect against hacking, phishing, counterfeiting, and fraud.
As new cryptoassets are explored and adopted, additional challenges could include personal privacy, payroll, taxes, and technology reliability.
Stability and a solid foundation for the crypto market
The demand for and rising popularity of cryptoassets has put focus on the need for stability and a solid foundation for the crypto market — hopefully, CBDCs can provide that stability.
As the crypto market rebuilds, aspiring management accountants like you will lead the way with strong financial skills. Business leaders, customers, regulators, governmental entities, and other organisations will lean on the guidance of management accountants as CBDCs and cryptoassets become more established.
