The U.S. Federal Accounting Standards Advisory Board (FASAB) has clarified that confiscated crypto assets must be considered “non-monetary assets” while central bank digital currencies (CBDCs) ) must be considered a monetary instrument.
Accounting standards for confiscated cryptocurrency
FASAB has publish Technical Bulletin (TB) on Friday to clarify accounting and reporting standards for confiscated digital assets. FASAB is responsible for developing and promulgating accounting standards for the United States government.
Emphasizing that central bank digital currencies (CBDCs) are “generally considered the official form of digital currency backed by governments, essentially serving the same purposes as physical cash” , the news release stated:
“Reporting entities should treat central bank digital currencies as monetary instruments and treat all other digital assets as non-monetary assets.”
FASAB details all other digital assets including crypto assets, cryptocurrencies, stablecoins, NFTs, security tokens, and anonymous coins.
The bulletin explains that with the exception of central bank digital currencies, digital assets “are not considered fiat money” and “generally do not have all monetary characteristics.”
“They are ineffective as a unit of account, medium of exchange or store of value.
Crypto assets are not effective means of exchange due to the lack of entities that accept them as a form of payment and because crypto assets do not have the same characteristics that give money its power and legitimacy fiat, such as backed by a sovereign nation’s institutions and legal system.
Crypto assets typically do not represent a stable store of value, which is necessary to function effectively as money, due to significant fluctuations in their market value.”
Annie
According to Newsbitcoin
