BoE’s Multi-Money System (Stablecoins & Digital Pound)
Accounting for the Future: What the Digital Pound & Stablecoins Mean for Your Books
The Bank of England is laying the groundwork for a “multi-money” system that embraces both traditional
currency and digital assets, including stablecoins and a digital pound. This represents one of the most
significant financial innovations in modern times.
Why it matters
Stablecoins, pegged to assets like the US dollar, are already used globally for fast, low-cost transfers.
Meanwhile, a UK-backed digital pound could bring legitimacy and mass adoption. For businesses, this will
directly impact bookkeeping, taxation, and audits.
Challenges ahead
Valuation: Stablecoins may fluctuate slightly—how do we report them on balance sheets?
- Tax treatment: HMRC is clear—crypto gains are taxable. But classification (capital, trading, or FX gains) matters.
- Audit standards: Verification of blockchain-based transactions requires new methods.
- Fraud & risk: Digital wallets pose risks of hacking and theft.
The Accountant’s role
At Rothstone Accountants, we prepare clients for this new frontier by:
- Updating ledgers for crypto transactions.
- Applying HMRC’s latest guidance consistently.
- Advising on secure wallet integration.
- Monitoring evolving regulations.
Steps businesses can take now
1. Keep comprehensive records of every digital transaction.
2. Don’t assume crypto is tax-free—seek professional guidance.
3. Pilot stablecoin payments cautiously.
4. Stay updated on HMRC and BoE announcements.
Final thought
The digital pound may still be in development, but stablecoins are already influencing global trade.
Businesses that adapt early will benefit from greater efficiency and smoother compliance.
