For your response posts, address the following: Do you agree or disagree with your classmates' views on the ability of digital assets to replace foreign currencies? Highlight points of commonality and engage thoughtfully with their responses. Which relevant challenges would you add to what was covered in your classmates' initial post? Which other accounting implications should be considered with respect to digital assets?

While cryptocurrency has gained prominence over almost the last two decades, | do not think it could feasibly replace foreign currencies any time soon. Reiff (2024) addresses some advantages and disadvantages of cryptocurrency. Some people do not trust governments and third parties being involved in any electronic fund transfers; cryptocurrency eliminates the need for third-party verification through protective data storing and blockchain technologies. Other people are denied financial services due to reasons such as lack of collateral or simply lack those financial services in their areas; taking control away from central banks and providing services online through cryptocurrency services will allow more people to gain access to these financial services at more preferable rates. As it stands, however, cryptocurrencies are too volatile compared to most physical currencies, there are not as many protections in place for consumers in the crypto world as there are in the physical world, and physical currency is simply far more established and trusted by most of the world. There is no clear answer as to how long a shift to cryptocurrency and digital assets would take, but it would definitely take a long time. The main reason is there are still challenges to be overcome before cryptocurrency can be trusted as a standard currency. The points from the previous paragraph still stand. Moreover, cryptocurrencies are being used in illegal activities such as darknet deals and hackers holding data ransom, the energy currently required to mine bitcoin uses more electricity than entire countries, and the lack of government and third-party regulation poses risks of fraud, cybersecurity, and financial stability (Siripurapu & Berman, 2024). Clearly there are heaps of legal, ethical, and logistical issues to work out if cryptocurrency and digital assets are to replace foreign currencies. lf this change does occur eventually, there would be drastic changes to how accounting is handled, specifically in relation to derivatives and the current and temporal methods. Currently, the IRS views cryptocurrency as property, not currency (Herzfeld et al., n.d.). A shift to cryptocurrency would thus require a complete overhaul of how it is handled and accounted for in general, let alone with specific circumstances such as hedge accounting and foreign transactions. If cryptocurrency and digital assets replaced foreign currencies and also were unified in themselves, the need for the current and temporal methods would disappear. Current hedging methods would need to adapt to the characteristics and risks of cryptocurrency and digital assets. And as touched on earlier, the IRS would need to restate how cryptocurrency is handled so that new derivatives and hedging methods can emerge