{"id":17831,"date":"2022-12-08T20:11:10","date_gmt":"2022-12-08T18:11:10","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=17831"},"modified":"2022-12-08T20:05:35","modified_gmt":"2022-12-08T18:05:35","slug":"preconditions-for-cryptocurrency-accounting-as","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/preconditions-for-cryptocurrency-accounting-as\/","title":{"rendered":"Kostyuchenko V., Hrytsenko V. Preconditions for cryptocurrency accounting as the official state currency"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification<\/strong>: K39; M41; O17
\n<\/span><\/td>\n		DOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V35(2022)-11<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]Kostyuchenko Valentyna, <\/strong>Doctor of Economics, Professor, Professor of the Accounting and Taxation Department, State University of Trade and Economics, Kyiv, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0002-3121-842X<\/a>
\ne-mail: <\/strong>valentynak1098@gmail.com<\/a><\/p>\n

Hrytsenko Vladyslav, <\/strong>Master’s Degree Holder, State University of Trade and Economics, Kyiv, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0002-5633-2616<\/a>
\ne-mail: <\/strong>Hrytsenko.V@outlook.com<\/a><\/p>\n

 <\/p>\n

Preconditions for Cryptocurrency Accounting as the Official State Currency<\/strong><\/h2>\n

\u00a0\u00a0<\/strong><\/p>\n

Abstract. Introduction<\/strong>. The world today, gets acquainted with a new tool which is cryptocurrencies also known as virtual money. Governments and Central Banks of different countries often dispute about the use of these innovations. Some researches believe that virtual money (cryptocurrencies) is a crime, others believe that we are talking about a true revolution in the world of finances. Some of them share radical views and propose to impose criminal penalties on one who distributes and uses virtual money in view of the possibility of the potential for using them for the money-laundering purposes or for the financing of terrorism; others point out the inevitability of the development and spread. The latter is epitomized by the adoption of cryptocurrency as the official state currency. However, such a decision of governments imposes new questions and problems of cryptocurrencies accounting.<\/p>\n

Purpose.<\/strong> Deepening the theoretical foundations of the bitcoin accounting as an official currency and, accordingly, a legal instrument of payment.<\/p>\n

Results.<\/strong> The article deals with the economic essence of cryptocurrency, current situation and prospects for the development of this phenomenon in the world through the analysis of scientific articles of leading scientists and experts. In addition, the paper considers preconditions for cryptocurrency accounting as the official state currency on the example of Bitcoin in El Salvador and The Central African Republic, discusses the reasons of the adoption of cryptocurrency as the official state currency by poor countries.<\/p>\n

Conclusions.<\/strong> It is found that the use of bitcoin is an important factor in solving the country’s current economic and financial problems, which was used by El Salvador and The Central African Republic for today. Among such problems are the investment climate, speed and cost of payments, access of the population to banking services. The possibility of a negative impact of the use of cryptocurrencies on the economy is also allowed. As for accounting, the issues of adoption of bitcoin as an object of accounting, accounting estimate, accounting methods and criteria for its recognition in financial statements remain unresolved.<\/p>\n

Keywords:<\/strong> cryptocurrency; bitcoin; legal currency; accounting object; cryptocurrency accounting; accounting and financial reporting problems.<\/p>\n

References:<\/strong><\/p>\n

    \n
  1. Raiborn, C., & Sivitanides, M. (2015). Accounting Issues Related to Bitcoins. The Journal of Corporate Accounting & Finance<\/em>. Wiley Periodical. January\/February, 25-33. https:\/\/doi.org\/10.1002\/jcaf.22016 [in English].<\/li>\n
  2. Proch\u00e1zka, D. (2018). Accounting for Bitcoin and Other Cryptocurrencies under IFRS: A Comparison and Assessment of Competing Models. The International Journal of Digital Accounting Research<\/em>, 18, 2018, 161-188. https:\/\/doi.org\/10.4192\/1577-8517-v18_7 [in English].<\/li>\n
  3. PWC (2021). El Salvador\u2019s law : a meaningful test for Bitcoin. Retrieved from : www.pwc.com. El Salvador\u2019s law: a meaningful test for Bitcoin (pwc.com) [in English].<\/li>\n
  4. Yatsyk, (2017). Method of financial accounting of cryptocurrencies as a special type of electronic money. Molodyj vchenyj<\/em>. <\/em>2 (42). 349-354 [ in Ukrainian].<\/li>\n
  5. Lehenchuk, S. (2010). Accounting methodology for the e-commerce process. Journal of Chernivtsi Institute of Trade and Economics<\/em>. Serija : Ekonomichni nauky, \u0406V (40). 321-334 [in Ukrainian].<\/li>\n
  6. Koriahin, M. (2012). Electronic money : usage features and accounting. Journal of Ukranian National Forestry University<\/em>, 22.5. 241-246 [in Ukrainian].<\/li>\n
  7. Nef’odov, (2004). Online currency, or what is electronic money on the Internet. Bukhghalterija: zb-k systematyzovanogho zakonodavstva. 5. 193-197 [in Ukrainian].<\/li>\n
  8. (2021). It’s Time To Rethink Accounting For Cryptocurrency. Retrieved from : https:\/\/www.forbes.com. It’s Time To Rethink Accounting For Cryptocurrency (forbes.com) [in English].<\/li>\n
  9. (2021). Accounting for cryptocurrencies. Retrieved from : https:\/\/www.accaglobal.com. Accounting for cryptocurrencies | ACCA Global [in English].<\/li>\n
  10. (2022). Retrieved from : https:\/\/Bitcoin.org\/Bitcoin.pdf. [in English].<\/li>\n
  11. CAANZ (Chartered Accountants Australia & New Zealand). ( 2015). 26 [in English].<\/li>\n
  12. Stancheva-Todorova, E. (2019). Accounting for Cryptocurrencies \u2013 Some Unanswered Questions and Unresolved Issues. Year Book of Sofia University \u201cSt. Kliment Ohridski\u201d \u2013 Faculty of Economics and Business Administration<\/em>. 19. DOI: 10.13140\/RG.2.2.19422.28486 [in English].<\/li>\n
  13. Personal remittances, received (% of GDP) \u2013 El Salvador. Retrieved from Personal remittances, received (% of GDP) – El Salvador | Data (worldbank.org) [in English].<\/li>\n
  14. 70% of El Salvador\u2019s population doesn\u2019t have a bank account and work in the informal economy. Retrieved from : Nayib Bukele on Twitter: “Furthermore, 70% of El Salvador\u2019s population doesn\u2019t have a bank account and work in the informal economy. Financial inclusion is not only a moral imperative, but also a way to grow the country\u2019s economy, providing access to credit, savings, investment and secure transactions.” \/ Twitter [in English].<\/li>\n
  15. PWC. (2019). In depth \u2013 A look at current financial reporting issues. Retrieved from : www.pwc.com. Cryptographic assets and related transactions: accounting considerations under IFRS (pwc.com) [in English].<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received:<\/strong> 18 October 2022<\/p>\n

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    Kostyuchenko V., Hrytsenko V. (2022). Preconditions for cryptocurrency accounting as the official state currency. Modern Economics, 35(2022), 74-79. DOI: https:\/\/doi.org\/10.31521\/modecon.V35(2022)-11.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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    [vc_row][vc_column][vc_column_text] JEL Classification: K39; M41; O17 DOI: https:\/\/doi.org\/10.31521\/modecon.V35(2022)-11 [\/vc_column_text][vc_column_text]Kostyuchenko Valentyna, Doctor of Economics, Professor, Professor of the Accounting and Taxation Department, State University of Trade and Economics, Kyiv, Ukraine ORCID ID: 0000-0002-3121-842X e-mail: valentynak1098@gmail.com Hrytsenko Vladyslav, Master’s Degree Holder, State University of Trade and Economics, Kyiv, Ukraine ORCID ID: 0000-0002-5633-2616 e-mail: Hrytsenko.V@outlook.com   Preconditions for
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