Call for FASB to Address Digital Currency

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State Board Report

August

The Chamber of Digital Commerce (CDC), which characterizes itself as “the world’s largest trade association representing the blockchain industry,” on July 11 hosted a “Congressional Blockchain Education Day” in Washington, D.C. Members of the CDC met with elected officials and their staff to underscore the importance of blockchain technology. Blockchain inovlves an open, distributed ledger and will be one of the technology trends discussed at NASBA’s Annual Meeting in October. The CDC has requested the Financial Accounting Standards Board to add to their agenda a project to address accounting for digital currencies, which rely on blockchain technology.

In her June 8 letter to the FASB, Chamber President Perianne Boring wrote: “”Blockchain technology uses a peer-to-peer decentralized and distributed network that allows parties that do not know each other to transact securely without the use of an intermediary. Transactions are recorded on a public digital ledger which is shared with all other computers connected to the network.”

The CDC President asked the FASB to develop a subtopic to address recognition, measurement, presentation and disclosure for digital currencies.