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The latest in financial news: The US accountings board agrees to “fair value” for the company’s crypto holdings, the Fed maintains current interest rates to monitor the inflation rate, and Russians disapprove of a CBDC.

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Crypto Holdings Get A New Valuation

There has been a significant shift in accounting rules for U.S. companies regarding their ownership of cryptocurrencies, such as bitcoin. Previously, companies could only record gains in the value of digital assets when they were sold, while losses were reflected annually. However, the Financial Accounting Standards Board (FASB) has now allowed companies to use fair-value accounting, enabling them to immediately report gains and losses on their income statements. This change is seen as a crucial development that could encourage businesses to hold digital assets on their books, particularly during bullish market periods, as it positively impacts their bottom line. Despite this, the adoption of cryptocurrencies by companies may still be limited due to the risk aversion of CEOs and senior executives, who prioritize conservative financial strategies and predictable earnings.

The Fed Maintains Interest Rates

In its latest meeting, the Federal Reserve opted to maintain current interest rates, underscoring its commitment to achieving a 2% inflation target. However, concerns linger about the potential for these rate adjustments to precipitate a recession. The Fed's aspiration is to engineer a "soft landing" by taming inflation without destabilizing economic growth. This dynamic requires careful observation by investors, as shifts in interest rates and banking regulations can affect access to loans for homes, businesses, and other investments. Consequently, prudent risk management is imperative to safeguard wealth during this period of monetary policy adjustment.

90% of Russians Don’t Support a Digital Ruble

A recent survey of Russians in western Russia has 90% of participants not interested in being paid with a digital Ruble through a central bank digital currency (CBDC). There has also been disinterest in a CBDC among business owners in Russia as well. But there is a small majority in Lipetsk that welcomes the opportunity to be paid in digital rubles.

What Does It Mean For You?

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