With a market cap of over $7 billion (and growing,) navigating the newly booming stablecoin economy is one of today's foremost challenges in the digital asset accounting space.
A new whitepaper released by The Wall Street Blockchain Alliance and CPA.com highlights some key considerations for this formidable new asset class. Penned by Dr. Sean Stein Smith, Stablecoins 2.0: Advanced Considerations for Accounting Practitioners, builds on a prior WSBA stablecoin intensive for accounting professionals.
"This important work extends the previous thought leadership from our Accounting Working Group, and examines the deeper implications of stablecoins for the accounting profession and beyond." Said Ron Quaranta, Chairman of the Wallstreet Blockchain Alliance.
Gilded's CFO and CPA-in-residence, Joseph "Joey" Ryan, is a contributing author of Stablecoins 2.0. "Educating businesses about the basics of stablecoin transactions is paramount for global adoption," said Ryan. "Demystifying the stablecoin allows companies to leverage the incomparable speed, low cost, and transparency that blockchain-based transactions offer."
Pegged 1:1 to the major global currencies, stablecoins solve the problem of volatility, making it an attractive option for companies that wish to enjoy the benefits of digital currency without the volatility. A company or individual transacting with bitcoin might find that the value has changed wildly before they complete their transaction. But if they send a Gilded payment with an Ethereum-based stable token, such as BUSD or PAX, the value remains consistent and the transaction is 90% faster than a bank wire.
With blockchain technology poised to disrupt the profession in a major way, there's no better time for accounting professionals to prime themselves on the greater ramifications of stablecoins.