In a landmark development for the cryptocurrency industry, the International Financial Reporting Standards (IFRS) Foundation has formally classified Bitcoin as a “store of value” in its global wealth reporting framework.
The decision marks the first time a leading international accounting body has given Bitcoin this recognition, placing it alongside traditional assets such as gold and government bonds in financial reporting.
According to the IFRS Foundation, the classification will guide auditors, corporations, and institutional investors in how Bitcoin holdings are recorded in official accounts. Industry experts say this move could pave the way for broader adoption of the cryptocurrency in both corporate treasuries and national reserves.
“This is a historic moment,” said crypto market analyst Tunde Adebayo. “Recognition by IFRS gives Bitcoin more legitimacy in the eyes of regulators, accountants, and conservative investors who have been waiting for formal guidance before entering the market.”
Following the announcement, Bitcoin’s price experienced a modest surge, as traders speculated on increased institutional demand. Advocates believe the recognition will strengthen the argument for Bitcoin as a hedge against inflation and currency devaluation, especially in emerging economies.
Critics, however, caution that Bitcoin’s volatility still makes it a risky asset, despite its new classification. They argue that the cryptocurrency’s price swings remain a concern for those seeking stability.
The IFRS Foundation says the change will take effect in the next financial reporting cycle, with more detailed implementation guidelines expected in the coming months.
