The Role of Accounting Tokens in Crypto
Accounting Tokens are tokenised credit or debit entries (IOU/UOM), as in any spreadsheet-based accounting system.
What is Accounting Token?
A new alternative to stabelcoins, Settlement tokens are an alternative for the use of cash. They help businesses to operate in compliance with legal requirements. Stablecoins have an interesting challenge for regulators, as they are similar to cash and act like money, which means it is possible to use them anonymously and globally. As a result, many jurisdictions are strictly regulating the use of stablcoins.
The settlement tokens can be said to have the status of credit or debit entries (IOU/UOM), as in any ledger-based electronic accounting system. The settlement partners are limited, and such solutions are ideal for dealing with a limited number of settlement partners. As long as the number of their number is small, the whole process can be settled on blockchain with a smart contract with cryptocurrencies. Tokens for settlement do not necessarily represent currency, they can also be used to represent goods or services that are equal to the amount of value accounted for. According to the principles of operation, in practical terms, settlement tokens work similarly as certificates.
Blockchain allows you to protect your data and process compliance. It is also possible to use the blockchain for security and process compliance. In order to limit tokens holders, businesses can restrict possible users by implementing a KYC/AML process, providing documents and keeping the whole process transparent on a public blockchain.
The CEO of CoreLedger, which provides businesses of all sizes with access to the benefits of blockchain technology, is Johannes Schweifer. He is the founder of several blockchain start-ups, including Bitcoin Suisse.