Blockchain is an Accounting Technology which is used to reduce the needed time for reconciliation, recording, and reporting in the industries.
Here’re the top blockchain trends that every CPA needs to know.
- Regulatory framework
- Tokenization of assets and securities
- Cryptocurrencies are perhaps here to stay
- New business models
- Industry adoption of blockchain is on the rise.
In the US, the regulators approach blockchain technology to call “light-touch regulatory framework.” Both the CFTC and SEC are aware of the products which lead to digital assets. SEC and CFTC encourage the innovators to have a continued conversation with them and guide them through a regulatory process.
Tokenization of assets and securities:
The financial service industries and some bunch of startups are exploring many ways to use the blockchain technology in tokening assets. The blockchain enables mechanisms like Security Token Offerings and Initial Coin Offerings. Tokenization helps to unlock the assets of trillion dollars into the economy.
Cryptocurrencies are perhaps here to stay:
There has been a latest impetus with the JPM coin advent for token discussion and cryptocurrency. JPM coin is a perfect way to look at blockchain technology in business cases and also provides ideal testing for peer firms. In the future, we are going to have more financial institutions eventually coming for interoperable settlement. Cryptocurrencies provide many fraudulent activities in the international money transfer process.
New business models:
Blockchain technology enables the digital assets’ transfer similar to the exchange of information through the internet. Over the past 30 years, the internet has enabled an easy exchange of data and in e-commerce includes online advertising, online video streaming, shared rides, social media and so on. At present, there are public-private partnerships in various works to explore the technology in the areas of transferring property titles and car titles.
Industry adoption of blockchain is on the rise:
Some of the supply chain industries and financial services are working on the building proof of blockchain technology concepts. While other industries such as construction, manufacturing, and media are catching up the blockchain concepts. Accountants are needed to track the information in the existing ERP products by integrating the blockchain technology.
For Certified Public Accountants, there’s a significant role in processing audit, model validation, and system testing. The systems with the blockchain-based design involve looking at the business process afresh. It’s prudent for the businesses to seek the help of professionals in testing the process before deploying into production. They also help in auditing and attestation.
The blockchain ecosystem boosts the accounting profession to participate with the industry leaders to increase the adoption of this technology and to understand the new business models. Hope you’ve attained some knowledge in blockchain trends from this article. Happy Learning!
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