Cryptocurrency as Medium of Exchange and Its Applicability in the Philippine Accounting Standards
DOI:
https://doi.org/10.61841/1pbdck91Keywords:
Cryptocurrency, Bitcoin, medium of exchange, fiat currency, blockchainAbstract
The purpose of the study is to determine the effects of using cryptocurrency as a medium of exchange in the Philippines and how the existing Philippine Accounting Standards are being applied in terms of reporting and valuation in Financial Statements. The study used qualitative method research to assess the relationship between using of cryptocurrency as a mode of payment today and the possibility of using cryptocurrency as a medium of exchange. The variables of the study are trading values, volatility, data security, and marketability. In trading values, the price of bitcoin varies directly to its volatility. If the volatility of the bitcoin increases, the price of bitcoin also increases. Hence, the value of the virtual currency is greatly affected by trading value. Accounting Standards may not be applicable in this situation unless it is considered to be in Hyper Inflationary Economy. Some countries have issued warnings and amendments while others have expanded their laws regarding virtual currency because one of the crucial features of this is data security. Lastly, in the aspect of marketability, the market capitalization of the virtual currency is growing at an unrealistic rate, to which accounting standards have note identified rules and principles to determine how would this rate are being valued. Different countries have different views with regards to cryptocurrencies. Some consider it as a threat, while others see a potential technology in cryptocurrencies wherein in, various countries made those a legal tender with a specific classification with a corresponding tax rate.
Downloads
References
1. Moore, T., & Christin, N. (n.d.). Beware the Middleman: Empirical Analysis of Bitcoin-Exchange Risk. Retrieved July 2018, from https://tylermoore.ens.utulsa.edu/fc13.pdf
2. Nakamoto, S. (n.d.). Bitcoin: A Peer-to-Peer Electronic Cash System.
3. Arnette, G. (2018, February 23). The wild west of cryptocurrency security – and what the future holds. https://www.csoonline.com/article/3257785/financial-it/the-wild-west-of-cryptocurrency-security-and-what-the-future-holds.html
4. Pando, A. (2018, March 20). Cryptocurrencies And The Market. Retrieved from Forbes: https://www.forbes.com/sites/forbestechcouncil/2018/03/20/cryptocurrencies-and-the-market/#4564348b30f8
5. Cieplak, J. E., & Griffith, C. (n.d.). Cryptocurrency and Initial Coin Offerings: Despite a Plethora of Regulators, Gaps Remai. Banking & Financial Services Policy Report, Volume 37 Number 4.
6. Gandal, N., & Hałaburda, H. (2014). Competition in the cryptocurrency market.
7. Bangko Sentral ng Pilipinas. (2017). Advisory on the Use of Cryptocurrency. Retrieved from http://www.bsp.gov.ph/publications/media.asp?id=4575
8. Roos, C. (2015, November 9). The motivation and factors driving crypto-currrency adoption in SMEs.
9. Chauhan, Y. (2018, April 5). Impact of Cryptocurrency on Business. Retrieved from Tech Funnel: https://www.techfunnel.com/fintech/impact-of-cryptocurrency-on-business/
10. Wagner, A. (2014). How to Fight Volatility In Cryptocurrency. Retrieved from https://bitcoinmagazine.com/articles/fight-volatility-cryptocurrency-1413313809
11. Dixon, C. Bitcoin was on a wild roller-coaster ride for much of 2013. Retrieved from https://www.coindesk.com/venture-capitalist-chris-dixon-bitcoin-will-hit-100000
12. Cooper, C. (2017, February 23). The cybersecurity side of cryptocurrency. Retrieved from CSO: https://www.csoonline.com/article/3166938/data-breach/the-cybersecurity-side-of-cryptocurrency.html
13. Chartered Professional Accountants of Canada . (2018). An Introduction to Accounting for Cryptocurrencies.
14. Berentsen, A., & Schär, F. (2018). A Short Introduction to the World of Cryptocurrencie.
15. Chung, E. (2018). Cryptocurrencies – An Accountant’s Take Retrieved from https://medium.com/@bdoaustralia/cryptocurrencies-an-accountants-take-3938f2cf67b1
16. Bunjaku, F., Gjorgieva-Trajkovska, O., & MitevaKacarski, E. (n.d.). Cryptocurrencies – Advantages And Disadvantages. Journal of Economics, 2(1).
17. Hays, D. (n.d.). Bitcoin and New Austrian. Retrieved from https://cryptoresearch.report/wp-content/uploads/reports/Hayek%20Feder.pdf
18. Morisse, M. (2015). Cryptocurrencies and Bitcoin: Charting the Research Landscape.
19. Burniske, C., & Tatar, J. (2018). Cryptoassets. CCR Wealth Management LLC. (n.d.). Cryptocurrencies & Bitcoin—Fad or Future?
20. Corbeta, S., Luceyb, B., Urquhartc, A., & Yarovayad, L. (2018, March 18). Cryptocurrencies as a Financial Asset: A systematic analysis.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
