Decentralized finance (DeFi) lending platforms have rapidly evolved within financial markets, with stablecoins playing a pivotal role in these ecosystems by providing price stability and enhancing capital efficiency. However, DeFi lending platforms still face challenges including market volatility, smart contract security, regulatory uncertainty, and liquidity constraints. This paper analyzes the function of stablecoins within DeFi lending platforms, explores their advantages and challenges, and forecasts future development trends. The article first introduces the fundamental concepts and classifications of stablecoins, then analyzes their advantages and challenges within lending markets, and finally looks ahead to innovations and future developments for stablecoins. Through this analysis, the paper provides in-depth insights for researching stablecoin applications in DeFi lending.
The recent blockchain policy pronouncement in Nigeria gave rise to examine the effect on digital currency market performance. Knowing that policy statements played a dynamic role on market performances, and for the fact that digital currency is link to market volatility, this work analyzed the impact of Nigerian blockchain policy on digital currency market performance during the short-term periods. Based on the exigencies, the research covered a period of 23 weeks using a-weekly data between May 3, 2023 and October 4, 2023. The study employed selected top-five digital currencies including Bitcoin, Ethereum, Tether, BNB, and XRP of their market performances extracted from crypto database. The generalized autoregressive conditional heteroskedasticity (GARCH) least squares analytical tool was applied to ascertain how Bitcoin, Ethereum, Tether, BNB, and XRP digital currencies market performance responded to Nigerian blockchain policy in the short-term. The findings showed that Nigerian blockchain policy impacted negatively on Bitcoin, XRP, and BNB market performance in the short-term. However, Nigerian blockchain policy impacted positively on Tether, and Ethereum market performance in the short-term. The research further revealed Ethereum, and BNB digital currencies constituted significant variables of study. Finally, Nigerian blockchain policymakers were recommended to revised and address the diverse impacts on digital currencies with tailored regulations to enhance investors protection, and support the positive trends for a balance-support of the digital currency market.
Hameer Hussain Shah, Asra Shaikh, Muhammad Mujtaba, Tanveer Hussain Shah
Purpose: The purpose of this study is to examine how the adoption of major cryptocurrencies affects the financial markets of Pakistan. It focuses on three key areas: the gold market, the stock market (KSE-100 index), and the bond market. Design: This research employs a quantitative approach, utilizing regression analysis to investigate the relationship between the adoption of five major cryptocurrencies (Bitcoin, Ethereum, Binance Coin, Cardano, and Ripple) and their impact on gold prices, stock market performance, and bond price movements in Pakistan. Findings: The results show that cryptocurrencies do affect financial markets, but each coin has a different impact. Bitcoin and Binance Coin increase gold prices, while Cardano and Ripple decrease them. In the stock market, Bitcoin lowers the index, but Ethereum and Ripple increase it. Cardano and Binance Coin have little to no impact on stocks. For bonds, Cardano and Ripple lower prices, while Binance Coin and Ethereum raise them. Bitcoin has a small negative effect on bonds. Originality and Value: This study contribute significantly to reshaping the investment culture in Pakistan, particularly in the context of evolving regulatory frameworks, creating awareness about digital currencies especially cryptocurrencies so that financial investors, portfolio and fund managers can take better informed decisions. Keywords: Cryptocurrency, Blockchain Technology, Financial Inclusion, Bitcoin, Ethereum, Gold Market, Stock Market, and Bond Market JEL Classification codes: G0, G1, G2, O3
Blockchain technology is becoming an important tool for secure financial transactions. It supports decentralized finance (DeFi) services and new ways of auditing. This paper gives an overview of how blockchain is used in financial modeling, focusing on DeFi and auditing. We explain the basic technology behind popular blockchain systems, like public platforms such as Ethereum (with smart contracts and oracle networks), and private systems like Hyperledger Fabric. We also look at advanced methods like zero-knowledge proofs. We show how these tools help build financial models in DeFi by allowing peer-to-peer services without needing trust, and in auditing by making data more transparent and secure. We compare different blockchains in terms of speed, cost, and how well they scale. Security issues (like smart contract bugs or attacks on consensus) and practical problems (like trusting oracles and following laws) are also discussed. The review article looks at challenges in using blockchain and some of the latest solutions, such as Ethereum’s move to proof-of-stake, sharding for better scalability, and using zero-knowledge proofs for privacy. We also suggest future research topics, like connecting different blockchains, checking smart contracts with formal methods, creating better rules and laws, and training skilled workers. The goal is to help researchers and professionals understand the current situation and future of blockchain in finance and auditing.
This thesis investigates how technological innovation influences the valuation of cryptocurrencies, focusing on the top 50 DeFi tokens by market capitalization. To capture the multifaceted nature of blockchain innovation, I construct three distinct indicators: a Whitepaper Innovation Index based on word embedding and clustering techniques, a standardized Audit Security Score derived from rubric-guided evaluation of audit reports, and a Code Maturity Proxy based on GitHub fork counts. These metrics are combined with financial data from CoinMarketCap and project-level metadata including blockchain architecture classification, academic involvement, historical volatility, and token age. Cross-sectional regression analysis shows that the proposed innovation indicators—while theoretically meaningful—do not exhibit statistically significant relationships with either market capitalization or trading volume. Instead, token age emerges as the most robust and consistent predictor across specifications, indicating that investor behavior is more responsive to project longevity than to technical complexity. Historical volatility is also negatively associated with market capitalization, suggesting that market participants tend to penalize assets with unstable pricing histories. The results suggest that, within the current market landscape, signals of maturity and stability outweigh detailed technical disclosures in shaping investor perception. This study contributes to the empirical literature by introducing a structured, multi-dimensional framework for evaluating technological innovation in crypto assets and by shedding light on the behavioral cues that dominate pricing dynamics in decentralized finance.
The accelerating shift toward a digital economy, driven by advancements in technology, has fundamentally transformed the nature of assets, markets, and business models. In this changing environment, Fair Value Accounting (FVA) — which aims to measure assets and liabilities based on current market conditions — faces unprecedented challenges and opportunities. The emergence of digital assets such as cryptocurrencies, non-fungible tokens (NFTs), and decentralized finance (DeFi) products has exposed limitations in traditional valuation frameworks, highlighting issues related to market volatility, illiquidity, and the absence of standardized valuation practices. At the same time, technological innovations like artificial intelligence (AI), big data analytics, and blockchain technology offer new tools that can enhance the accuracy, transparency, and timeliness of fair value measurements. This paper critically examines the future trajectory of fair value accounting in a digitalized world, identifies the major obstacles in valuing digital assets, and explores the role of emerging technologies in addressing these gaps. By analyzing global regulatory responses and proposing strategic reforms, this study provides insights into how accounting standards must evolve to maintain relevance, reliability, and comparability in financial reporting. Ultimately, the paper argues for a proactive transformation of FVA practices, integrating dynamic digital valuation methods while preserving the core principles of accountability, transparency, and investor protection in an increasingly complex economic landscape.
Penelitian ini bertujuan untuk memetakan tren penelitian terkait Digital Financial Reporting (DFR) menggunakan pendekatan bibliometrik berbasis data dari Scopus. Analisis dilakukan menggunakan perangkat lunak VOSviewer untuk mengidentifikasi jaringan ko-kutipan, kolaborasi antar penulis, institusi, dan evolusi topik penelitian dari tahun 2000 hingga 2024. Hasil penelitian menunjukkan peningkatan signifikan dalam publikasi tentang DFR, khususnya setelah tahun 2020, dengan fokus pada kualitas informasi akuntansi, keberlanjutan (sustainability accounting), dan inovasi teknologi seperti blockchain dan decentralized finance. Penulis dan institusi terkemuka, seperti "al-okaily m." dan Financial University under the Government of the Russian Federation, memainkan peran penting dalam menyebarkan pengetahuan di bidang ini. Meskipun tantangan seperti resistensi organisasi, standar global, dan keamanan data tetap ada, penelitian ini menunjukkan bahwa DFR memiliki potensi besar untuk meningkatkan transparansi, akuntabilitas, dan efisiensi pelaporan keuangan. Temuan ini memberikan wawasan penting bagi peneliti, praktisi, dan pembuat kebijakan untuk mengarahkan pengembangan DFR di masa depan.
The study focuses on the degree of correlation between the MACD histogram and the closing price of bitcoin on a weekly timeframe, which is an important factor in the formation of traders' forecasts within the framework of technical analysis. The main objectives of the study were to find out whether the minimum price of bitcoin increased or decreased compared to the previous week with similar changes in the MACD, as well as to determine the average and maximum series for the weekly closing price. The study found that in 54.45% of cases, a trader can expect the closing price of bitcoin to increase this week if the MACD histogram showed an increase in the previous week; or to decrease this week if the MACD histogram showed a decrease in the previous week. A trader can expect the closing price of bitcoin to continue its direction of movement in the second week 48.02% of the time. A trader can expect the closing price movement in one direction to end after the 4th week 95.48% of the time.
This study explores how blockchain technology enhances enterprise accounting information quality through a mixed-methods approach combining theoretical analysis and empirical testing. By constructing a "technology characteristics-quality dimensions-market efficiency" theoretical framework, we examine the specific mechanisms by which blockchain's decentralization, immutability, traceability, and transparency affect accounting information reliability, timeliness, and comparability. Using machine learning techniques on data from listed companies across retail, finance, and manufacturing sectors, we verify significant improvements in accounting information quality post-blockchain implementation, with notable industry heterogeneities. The research contributes a blockchain accounting maturity model and provides practical guidance for enterprises and regulatory authorities in promoting digital transformation of accounting systems.
The creative environment has transformed because of the digital economy's explosive growth, particularly for digital artists who now produce, distribute, and monetize their work primarily through online channels. To preserve the financial sustainability of digital art actors, this study aims to investigate how digital financial literacy serves as a supporting element in crowdfunding and microfinance. Two hundred respondents working in various digital art domains, including graphics, music, and non-fungible tokens (NFTs), were surveyed using a quantitative methodology. The study's findings, obtained using the Structural Equation Model (SEM) and SmartPLS software, demonstrated that microfinance has a statistically negligible and detrimental impact on the long-term financial viability of actors involved in digital art. Crowdfunding, on the other hand, significantly improves their financial viability. Furthermore, financial sustainability is positively and significantly impacted by digital financial literacy. The impact of microfinance on the long-term financial viability of digital creative players is mitigated by digital financial literacy. To enhance the resilience of creative professionals in an increasingly digital economy, this study emphasizes the importance of integrating financial education with training in digital skills. The study's practical implications include suggestions for legislators, professionals in the creative sector, and academic institutions to develop targeted initiatives that may enhance the financial viability of digital arts practitioners. To further understand the connection between digital financial literacy and the sustainability of the creative economy, further study is advised that it uses a longitudinal approach and cross-national comparisons.
This thesis explores the development of governance frameworks to facilitate fractional ownership of real estate assets using blockchain technology. Addressing inefficiencies in traditional property management, such as bureaucracy and lack of transparency, highlights the potential of distributed ledger technologies (DLTs) to enhance liquidity, streamline decision making, and democratize property investment. The legal, technical, and operational challenges, the thesis shows that tokenization, regulatory alignment, and further innovation will enable more efficient, transparent, and equitable management of real estate assets. It also evaluates blockchain compatibility for governance needs, compliance with EU regulations, and the implications of varying ownership structures.
This study delves into the world of cryptocurrency financial reporting (CFR) research, exploring the connections between researchers, their institutions, and the countries they represent, considering the context in which cryptocurrencies financial reporting practices remain uncertain. Data from the Web of Science Core Collection were employed, mainly publications from 2016 to 2023, using the term “cryptocurrency financial reporting” to identify publications regarding this topic. By leveraging tools like VOSviewer, Biblioshiny, and Microsoft Excel, we pinpointed influential research on CFR, collaboration networks among researchers, thematic groupings, and research trends. A unique aspect of the study is the classification of findings into three themes: “financial reporting” in 100% of the manuscripts, “asset evaluation” 61%, and “asset recognition” 72%. Our results suggest that while collaboration among researchers in this field is still developing, the innovative nature and growing recognition of CFR have the potential to attract more researchers. The limitation consists in the fact that the timeframe is limited, as data was gathered in March 2024, and the key term was found in a low number of publications. Given the dynamic nature of CFR, this bibliometric analysis might benefit from updates to capture the latest developments.
Zulkarnain Muhamad Sori, Shamsher Mohamad, AIMI ADIBAH YASMIN AHMAD, Mohammad Noor Hisham Osman
Cryptocurrencies are digital currencies void of any support from regulatory body that is currently in vogue as a medium of exchange and an investment security.This paper examines the accounting treatment for cryptocurrency from the perspective of IFRS and AAOIFI accounting standards and propose actions to standard setters on the best way to treat the Crypto transactions in accounting reports.A proper accounting treatment will allow for a fair reporting of crypto related transactions and facilitate users of financial statements to make objective assessment of this new invention.A content analysis was conducted to review all major accounting standards issued by accounting standards setting bodies for possible accounting treatment for cryptocurrencies.To better understand the issue in practice, an analysis of accounting treatment of cryptocurrencies by 2 companies also was conducted.This study found that there is no suitable accounting standard that could objectively be applied for cryptocurrencies.For example, from the perspective of the current accounting standards, cryptocurrencies match the definition of inventory if it is used as a commodity for broker-trader and intangible asset for others respectively.It is suggested that there an urgent need for the International Accounting Standards Board (IASB) to comprehensively develop accounting standard for cryptocurrency, specifically to develop a specific category for this type of assets to allow a standard treatment for cryptocurrency and fill the gap in the IFRS.
Mohamed M. Nofel, Mahmoud Marzouk, Hany Elbardan, Reda Saleh · 5 authors
Over the last few decades, remarkable technical advancements, including artificial intelligence, machine learning, big data, blockchain, cloud computing, and the Internet of Things, have emerged. These tools have the ability to change the accounting process. This study aims to conduct a systematic literature review on using the Internet of Things (IoT), blockchain, and eXtensible Business Reporting Language (XBRL) in a single accounting information system (AIS) to enhance the quality of digital financial reports. This paper employs a systematic literature review (SLR) methodology, specifically, by adopting the widely accepted PRISMA technique. The final sample of this study included 309 related studies from 2013 to 2023. Our findings highlight the lack of literature related to the integration of these three types of technologies within a unified AIS. This study is extremely significant because it proposes a new research stream that explores the possibility of integrating IoT, blockchain, and XBRL in a single accounting system, yielding a plethora of benefits to the accounting field. However, the potential benefits of such an integration are evident, including enhanced transparency, real-time reporting capabilities, and improved data security. Our paper’s main contribution is that it is the first paper, to the best of our knowledge, to explore the integration of these three technologies. We also identified important gaps in the research and pointed out ways for future research to somehow take a lead in exploring further how this integrated system is affecting accounting practices.
Against the backdrop of the Industrial Revolution 4.0, the advantages of blockchain technology in traceability, transparency, safety improvement, and efficiency improvement have made it possible to reduce the work of accounting personnel by 50 %, thus saving billions of dollars for global companies by combining this technology with accounting. However, the blockchain technology associated with accounting is in the experimental stage and has several problems to be solved including limited data processing capacity, information confidentiality, and regulatory difficulties. This innovation and progress in science and technology has provided more abundant, efficient, and professional technical support for the research of blockchain accounting documents. Among these advances, CiteSpace software has promoted the development of blockchain and accounting in the direction of visualization, comprehensiveness, security, and relevance. In this study, we used the knowledge map drawn by CiteSpace to search the core Blockchain Accounting database from 2013 to 2023 on the Web of Science (WoS). We obtained 1414 documents measured according to co-citation analysis, log-likelihood ratio (LLR) network clustering, co-occurrence keywords, and emergent time zone diagram method. We analyzed and summarized the important documents, research keywords, key research fields, and knowledge evolution related to "blockchain accounting" by network, literature integration, and popular research topics. We found that adopting blockchain technology in accounting information systems is expected to improve recordkeeping and reporting. Blockchain, as an innovative technology, provides a tamper-proof, traceable, and shareable platform for accounting information by using a distributed ledger system. By implementing blockchain, artificial intelligence can improve safety, transparency, and accuracy, and also may completely change the way we manage financial records. With its ability to improve overall efficiency and reduce errors, blockchain technology may change our familiar accounting methods. In addition, blockchain technology, intelligent contract, artificial intelligence, the Internet, information systems, and supply chain are the most important keywords, while blockchain technology, intelligent contract, and artificial intelligence are important components of blockchain accounting knowledge system. This research provided an important opportunity to advance the understanding of the crucial contribution of blockchain to the accounting field.
The Financial system has witnessed rapid technological changes. The rise of Bitcoin and other crypto assets based on Distributed Ledger Technology mark a fundamental change in the way people transact and transmit value over a decentralized network, spread across geographies. This has created regulatory and tax policy blind spots, as governments and tax administrations take time to understand and provide policy responses to this innovative, revolutionary, and fast-paced technology. Due to the breakneck speed of innovation in blockchain technology and advent of Decentralized Finance, Decentralized Autonomous Organizations and the Metaverse, it is unlikely that the policy interventions and guidance by regulatory authorities or tax administrations would be ahead or in sync with the pace of innovation. This paper tries to explain the principles on which crypto assets function, their underlying technology and relates them to the tax issues and taxable events which arise within this ecosystem. It also provides instances of tax and regulatory policy responses already in effect in various jurisdictions, including the recent changes in reporting standards by the FATF and the OECD. This paper tries to explain the rationale behind existing laws and policies and the challenges in their implementation. It also attempts to present a ballpark estimate of tax potential of this asset class and suggests creation of global public digital infrastructure that can address issues related to pseudonymity and extra-territoriality. The paper analyses both direct and indirect taxation issues related to crypto assets and discusses more recent aspects like proof-of-stake and maximal extractable value in greater detail.
Virtual Currency, Digital Currency, Crypto Asset, DLT(Distributed Ledger Technology) , Payment tokens, Virtual Asset, Bitcoin are some of the terms commonly used to denote the crypto currency without any standard common definition. These are all types of crypto assets developed initially in 2009. Bitcoin, Ethereum are some of the widely used crypto currencies. All around the world some countries have regularised this field, some are yet to regularise. The entire event is based on the concept of decentralisation or no need of a Central organ to control or monitor such currencies. The various articles published with different ideas regarding the taxability of such cryptocurrencies are analysed .
Crypto asset is a broad term covering all assets stored on distributed ledgers using block chain technology. Crypto assets are used to undertake commercial transactions and serve as investment options globally; yet there are no specific accounting standards that guide how crypto assets should be recorded in financial statements. There are few studies that address the issue of accounting treatment of crypto assets. The lack of literature has resulted in the need to investigate the views of professional accountants on how crypto assets should be reflected in financial statements. The research relied on primary data and adopted an expert sampling technique which is a form of judgmental sampling technique. The data was collected using questionnaire surveys to get the views of sixty-four professional accountants in Nigeria. The study attempts to contribute to the existing literature on crypto assets by providing a practical insight into the accounting treatment of crypto assets. The compliance of crypto assets having the features of assets in accounting was established by this study. According to the respondents’ crypto assets can be classified in various forms of assets like intangible assets, cash and cash equivalent, inventory, and financial instrument. Also, crypto assets can be classified as short-term assets or long-term assets. This is because of the accounting concept of substance over form that requires that the economic substance of transactions and events are decisive for the recognition and measurement of transactions in financial statements. The study concluded that crypto assets have an impact on financial statements of entities that hold the assets. The study recommends that there is need for standalone standards specifically for crypto assets to avoid the discretionary judgment current relied upon. There is also the need for the regulation of crypto assets in general.
Andrea Colombo, Teodoro Baldazzi, Luigi Bellomarini, Andrea Gentili · 5 authors
Recent extensions of Datalog that consider the temporal dimension as a first-class citizen have unlocked the possibility of using its temporal variants, such as DatalogMTL, to model and reason about complex financial domains. Very relevant ones are crypto-activity markets, which, according to the recent Markets in Crypto-Assets Regulation (MiCAR) of the EU, are described by white papers published by crypto-assets issuers. In particular, the issuers publish semi-structured information about the assets they are willing to offer. Then, the assets are implemented in decentralized finance contexts (i.e., in a blockchain) as executable scripts known as smart contracts. However, these scripts are often criticized for their complexity, which makes them challenging to understand and communicate. On the other hand, in our experience, the availability of a declarative and executable representation of a crypto-activity market fosters a better understanding of that market as well as improved transparency, reproducibility and, as a consequence, increased fairness. These characteristics are of major interest to the financial authorities for example for supervision purposes. In this paper, we study the problem of automatically translating textual descriptions of crypto-assets, written according to the MiCAR specifications, into DatalogMTL programs that represent and capture the respective crypto-activity market. To this end, we opt for a machine translation approach and leverage a Large Language Model. We discuss promising techniques and preliminary experimental results.
This paper explores Web3, the next phase of internet evolution driven by decentralization and blockchain technology, contrasting it with Web1 and Web2.It examines Web3's transformative potential in industries such as finance, art, gaming, and governance, with a focus on Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), Metaverses, and Decentralized Autonomous Organizations (DAOs).While Web3 offers significant promise, it faces challenges like scalability, security, regulatory uncertainty, and user experience issues.The paper also addresses the SEC's investigation of OpenSea, the largest NFT marketplace, as a critical obstacle for Web3's future.Finally, it discusses Web3's trajectory and highlights areas for future research.
D. Larry Crumbley, Donald L. Ariail, Amine Khayati
Crypto assets have upset the pillars of regulatory and centralized monetary policy, and the Financial Accounting Standards Board (FASB) has been slow in developing a position on how to account for cryptocurrencies. Currently, there are many accounting, finance, and tax meanings of cryptocurrencies. The purpose of this study is to show the path FASB has taken to develop accounting standards for more than 20,000 crypto assets, outline the positions other authorities and agencies have taken, and discuss Central Bank Digital Currencies since the United States and other countries are considering replacing their fiat currency with a digital currency. Furthermore, the study presents insights from an exploratory survey of accounting faculty opinions on cryptocurrencies. The discussion of virtual currency regulatory and accounting treatments informs the development of a regulatory framework.