Cash Reserves: Inc and Confounds Convention

cash reserves: That is the fundamental problem with bitcoin, if those are the objectives for treasurers, then breaking them could get them in trouble, according to The Japan Times. Tesla Inc.'s 1.5 billion bitcoin bet saw it join business software firm Micro Strategy Inc. and Twitter boss Jack Dorsey's payments company Square Inc. in swapping some traditional cash reserves for the digital coin. Yet there's unlikely to be a concerted cryptocurrency charge any time soon, say many finance executives and accountants loath to risk balance sheets and reputations on a highly volatile and unpredictable asset that confounds convention. ; When I did my treasury exams, the thing we were told as No. 1 objective is to guarantee security and liquidity of the balance sheet, said Graham Robinson, a partner in international tax and treasury at PwC and an adviser to the U.K.'s Association for Corporate Treasurers. RELATED STORIES Pandemic-era central banking is creating bubbles everywhere Bitcoin's epic run is winning more attention on Wall Street Bitcoin bet sparks rally at Japan's most expensive brokerage Coinbase mafia shows how tight a circle holds sway over Bitcoin Proponents of the cryptocurrency see it as a hedge against inflation at a time of unprecedented government stimulus, a falling dollar and record-low interest rates that make attractive high-yielding assets hard to find. It will take more than a small handful of disruptive companies investing in bitcoin to impact the narrative in boardrooms, said Raul Fernandez, an entrepreneur and investor who sits on the audit committee of the board of chipmaker Broadcom Inc. as well as other companies. While the moves have prompted more boardroom discussions, headaches from bitcoin's volatility to accounting for it and storing it are likely to preclude a big wave of companies holding large amounts on balance sheets in the short term, according to financial officers, board members and accountants. ( As reported in the news.

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