Digital Currencies and Accounting Procedures: A Conceptual Review

Abstract

Digital currencies and assets (which include cryptocurrencies, central bank digital currencies, among others) are reorganizing financial systems globally and accounting is evolving accordingly. They are difficult to recognize, measure, value, and disclose in financial statements because they are decentralized, subject to price volatility, and technologically complex. This study offers a discussion about the accounting treatments, theoretical views and empirical studies related to report of digital currencies in the literature by a qualitative investigation of peer-reviewed journal articles published during 2022-2026. Findings of the study shows drafting and amending accounting standards on the complete is imperative for ensuring that financial reporting of digital currency becomes consistent and reliable which in turn will be utilized by the regulatory and financial performing bodies. A standard need to be developed to deal specifically with the questions of recognition and measurement in respect of digital currency. Corporations should be incentivized to implement strong internal controls and employ blockchain-based accounting solutions that increase transparency, traceability, and the reliability of digital currency transactions.  Keywords: blockchain accounting, cryptocurrency accounting, digital assets, digital currency, financial reporting