The concept of cryptocurrency has attracted widespread attention in recent years. At the simplest level, a cryptocurrency is essentially a digital currency which utilises advanced cryptography to facilitate anonymity and security in transactions. Cryptocurrencies can therefore be viewed as forms of digital money which can be used to purchase goods and services. Examples of such cryptocurrencies are Bitcoin, Ethereum, Ripple and Cardano.
This
article, published in the March 2023 edition of Accountancy Plus, provides an insight to the basic underlying technology associated with cryptocurrencies, along with a synopsis of the key highlights in their development, advantages and risks, regulatory environment and financial reporting requirements.