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Accounting for digital currencies

Author

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  • Alsalmi, Noora
  • Ullah, Subhan
  • Rafique, Muhammad

Abstract

The purpose of this paper is twofold: (i) to investigate some of the main issues surrounding the classification of digital currencies, and (ii) to identify the accounting practices and standards tied to digital currencies. This paper discusses two different types of digital currencies, including: central bank digital currencies (CBDCs) and privately issued cryptocurrencies such as Bitcoin. The findings of this study suggest that current accounting standards do not precisely cover the accounting treatment of digital currencies, even though the estimated value of market capitalisation of cryptocurrency in 2022 was USD 200 billion. This conceptual paper identifies the imminent need for an accounting standard to provide guidance on the identification, classification, measurement, and presentation of digital currencies. In the interim, existing accounting standards can be amended to incorporate digital currencies to avoid inconsistent global accounting approaches.

Suggested Citation

  • Alsalmi, Noora & Ullah, Subhan & Rafique, Muhammad, 2023. "Accounting for digital currencies," Research in International Business and Finance, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:riibaf:v:64:y:2023:i:c:s0275531923000235
    DOI: 10.1016/j.ribaf.2023.101897
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    References listed on IDEAS

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    1. Boon Seng Tan & Kin Yew Low, 2017. "Bitcoin – Its Economics for Financial Reporting," Australian Accounting Review, CPA Australia, vol. 27(2), pages 220-227, June.
    2. Habip Demirhan, 2019. "Effective Taxation System by Blockchain Technology," Contributions to Economics, in: Umit Hacioglu (ed.), Blockchain Economics and Financial Market Innovation, chapter 0, pages 347-360, Springer.
    3. Morten Linnemann Bech & Rodney Garratt, 2017. "Central bank cryptocurrencies," BIS Quarterly Review, Bank for International Settlements, September.
    4. Sean Foley & Jonathan R Karlsen & Tālis J Putniņš, 2019. "Sex, Drugs, and Bitcoin: How Much Illegal Activity Is Financed through Cryptocurrencies?," The Review of Financial Studies, Society for Financial Studies, vol. 32(5), pages 1798-1853.
    5. Elsayed, Ahmed H. & Nasir, Muhammad Ali, 2022. "Central bank digital currencies: An agenda for future research," Research in International Business and Finance, Elsevier, vol. 62(C).
    6. Cynthia Weiyi Cai, 2021. "Triple‐entry accounting with blockchain: How far have we come?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(1), pages 71-93, March.
    7. Codruta Boar & Henry Holden & Amber Wadsworth, 2020. "Impending arrival - a sequel to the survey on central bank digital currency," BIS Papers, Bank for International Settlements, number 107.
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    Citations

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    Cited by:

    1. Rosalynn Ornella Flores-Castañeda & Sandro Olaya-Cotera & Giancarlo Sánchez Atuncar & Orlando Iparraguirre-Villanueva, 2025. "Systematic review of the global impact of cryptocurrencies: adoption factors, challenges, environmental effects and cyber risks," Quality & Quantity: International Journal of Methodology, Springer, vol. 59(6), pages 5377-5396, December.
    2. Medina Ayta Mohammed & Carmen De-Pablos-Heredero & José Luis Montes Botella, 2025. "Mapping the transformative realm of blockchain-enabled central bank digital currencies: a bibliometric analysis," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 15(1), pages 53-88, March.
    3. Georgiana-Iulia LAZEA (TRIFA) & Ovidiu-Constantin BUNGET & Anca-Diana BALAN & Mircea Stefan SOLOVASTRU, 2025. "Navigating Auditing Risks in the Crypto Asset Landscape," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 23(177), pages 197-209, February.
    4. Wen Jiayu & Zehao Wang, 2024. "RETRACTED ARTICLE: Economic integration through renewable energy and digital currency in RCEP," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-16, April.
    5. Voicu D. Dragomir & Valentin Florentin Dumitru, 2023. "Recognition and Measurement of Crypto-Assets from the Perspective of Retail Holders," FinTech, MDPI, vol. 2(3), pages 1-17, August.
    6. Yuan, Feng & Yuan, Jingyan, 2023. "On the relationship between protection of proprietary information and transparency of accounting information," Finance Research Letters, Elsevier, vol. 58(PB).
    7. Alexandru Adrian TUNSU, 2025. "Fraud Research in Economic Entities – A Conceptual Perspective," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 23(177), pages 210-222, February.

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    Keywords

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    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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