Central Bank Digital Currencies and Financial Reporting Implications

The main objective of this research paper was to analyze the central bank digital currencies (CBDCs). This paper focused on providing an in-depth understanding of CBDCs and their impact on financial reporting using IFRS amongst businesses and corporations. This also includes a detailed comparison of CBDCs to fiat currency and digital currency. This paper researched the benefits and risks associated with the CBDCs to better understand their impact on businesses, the financial sectors, and the economy. Two categories of CBDCs were investigated: 1. wholesale and 2. retail CBDCs examining the economic, social, political, regulatory, and legal environment provided a deeper understanding of CBDCs' future and implications for accounting and financial reporting.