The Institute of Chartered Accountants in England and Wales (ICAEW) has partnered with the United Arab Emirates (UAE) Banks Federation to help businesses understand and adapt to the digital asset landscape. The partnership aims to support the UAE’s position as a global leader in digital finance. However, challenges such as the lack of standardized accounting for digital assets and the need for robust cybersecurity were highlighted.

CBDCs Could Potentially Transform Banking

The Institute of Chartered Accountants in England and Wales (ICAEW) partnered with the United Arab Emirates (UAE) Banks Federation to help companies navigate the digital asset landscape. The collaboration comes as the UAE’s central bank digital currency (CBDC) reaches an advanced pilot phase.

ICAEW Middle East head Hanadi Khalife said the partnership affirms the UAE’s leadership in CBDC adoption.

“The UAE is setting a global standard with its proactive adoption of CBDCs. Our partnership with the UAE Banks Federation is testament to our commitment to guiding this transformation. Accountants play a crucial role in ensuring organisational compliance and success in this new digital era,” Khalife stated.

A virtual event preceding the ICAEW and UAE Banks Federation announcement reportedly highlighted the potential of CBDCs to transform banking operations and emphasized the inevitability of financial digitization.

UAE Banks Federation Director General Jamal Saleh, also a panellist, said the UAE is making progress in CBDCs and artificial intelligence (AI). However, he warned that embracing digital assets requires robust cybersecurity and interdepartmental collaboration. He added:

Through joint efforts, such as our work with ICAEW, and constant upskilling, companies can achieve secure and compliant integration of digital assets.

Meanwhile, panelists also discussed the absence of a standardized accounting framework for digital assets and its impact on investor confidence. They urged organizations to develop robust accounting practices and establish clear frameworks.

Source : Bitcoin News - Aug 13, 2024