By: Isha Das
In recent developments, the Financial Accounting Standards Board (FASB), the U.S. organization setting accounting standards, has confirmed the adoption of 'fair value' accounting for institutional Bitcoin holdings. The decision is set to be implemented by December 15, 2024, introducing significant promise for increased corporate adoption of the digital asset.
At the dawn of 2024, the cryptocurrency space sees the anticipation surrounding the potential introduction of a spot Bitcoin exchange-traded fund (ETF). The crypto community also looks forward to Bitcoin's halving event in April 2024, a development that could impact Bitcoin's supply and influence its market value.
This move by FASB is set to enable corporations to reflect the fair value of their Bitcoin reserves in financial reports, potentially driving further institutional adoption. It follows the strong performance of the digital asset throughout 2023 when Bitcoin recorded a 150% surge and displayed a sustained stability over the $40,000 benchmark.
These developments, in conjunction with the possibility of rate cuts and added liquidity in the face of a global economic downturn, position Bitcoin favourably as a leading global liquidity index.
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