As the pervasiveness and intrigue of cryptocurrency spreads from crypto natives and retail investors to corporations and nations, business leaders need to rapidly identify how crypto fits into their strategy or doesn't. In a complex global business environment, the CFO must understand what opportunities and risks may arise due to increased digital money usage. Companies that choose to ignore the crypto phenomenon may be left in the dust, especially if it becomes a preferred method of payment for customers, employees, and suppliers.
The CFO has a critical responsibility to inform the crypto strategy while the Finance function enables it. FP&A will need to develop reporting and manage impacts on the balance sheet. Controllership will need to assess the fair value of volatile assets and account for transactions and associated fees. Treasury will need to set up crypto wallets and bank accounts while also partnering with Tax to oversee the conversion of cryptocurrency into fiat currency. Internal Audit will need to ensure that proper controls are in place and that a holistic enterprise risk management program is positioned to provide governance. Policies and procedures will have to be adapted and aligned to new hedging and investment strategies. And of course, Investor Relations will have to address how crypto shapes the ESG conversation.
On top of all these requirements, CFOs and leadership more broadly will have to consider if they have the appropriate talent and skills to execute. What once was perceived as an endeavor for gamblers is now a potential corporate differentiator. Is pursuing a crypto strategy worth a roll of the dice?
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