CRYPTO PAYMENTS
CRYPTO CURIOUS? What to know before accepting digital payments They can help lower transaction fees, but plenty of due diligence is still required. Chris Baysden Once primarily the financial darling of tech geeks and the dark web, cryptoassets such as bitcoin and dogecoin have emerged as household names in the past few years, thanks in part to extensive media coverage of their rollercoaster valuations. All the exposure — especially with a big business name such as Elon Musk repeatedly making investment waves — may have more companies than ever wondering if they should join the crypto club. So what do crypto curious finance departments need to know when deciding whether to accept bitcoin and its digital brethren? This article breaks down key considerations CGMA decision-makers should keep in mind regarding accepting crypto payments. (Editor's note: The potential perks and pitfalls of corporate crypto investments are legion and beyond the scope of this article.) Accounting technology consultant Amanda Wilkie notes a number of potential advantages to taking payments in cryptoassets. At the top of the list, cryptoassets provide users with the opportunity for real-time settlements, lower transaction fees, and a way to generate revenue across borders without having to deal with currency conversions.
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DAYS OF FUTURE PAST Bitcoin, introduced in January 2009, is the oldest and by far the most widely used cryptocurrency, with a market cap north of $800 billion as of this writing. Ether is a distant second to bitcoin but still considerably more popular than tether, dogecoin, and the rest of the thousands of cryptoassets on the market. Wilkie thinks getting into cryptoassets now — a little over a decade into their development — can give companies a competitive advantage akin to the one that some tech-savvy companies gained in the early days of the internet. Whether for those reasons, or simply to attract more tech-savvy customers, many companies have dipped their toes into the crypto waters. AT&T, Microsoft, Rakuten, and Sotheby's are among the big names that accept crypto payments. But the
The Washington CPA Winter 2022
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