1 year ago
This could assistance rise cryptocurrency education, insulate consumers against scams, and summation the imaginable for wealthiness procreation successful crypto.
A trio of researchers from the University of Cincinnati precocious developed a Crypto Literacy Scale (CLS) to assistance standardize and measurement economical and fiscal cognition arsenic it relates to user and policy-maker knowing of cryptocurrencies and related technology.
The team’s probe paper, titled “Measuring Crypto Literacy,” details the spread betwixt accepted fiscal literacy and crypto literacy and the request for a Crypto Literacy Scale and policies that volition enactment cryptocurrency acquisition and literacy efforts worldwide.
According to the paper:
“Measuring fiscal literacy has encouraged policymakers and educators to make programs that amended fiscal decision-making and summation fiscal empowerment. However, determination is nary akin corresponding standard to measurement crypto literacy."The researchers constituent retired that fiscal literacy “also plays a important relation successful preventing scams by equipping individuals with the knowledge, skills, and assurance to marque informed fiscal decisions.”
In bid to make the CLS, the squad viewed cryptocurrency literacy abstracted from wide fiscal literacy. “Cryptocurrencies whitethorn look similar much accepted fiscal products on the surface” constitute the researchers, but owed to the centralized quality of accepted finance, the decision-making processes learned done a mean fiscal literacy syllabus often don’t use successful the cryptocurrency world.
Related: New taxation rules for crypto successful the US: Law Decoded
The researchers studied assorted aspects of cryptocurrency and distilled the basal cognition requirements they felt indispensable to show a basal knowing to 10 questions. While the questions weren’t shared successful the paper, accompanying images amusement that respondents were asked astir their acquisition with cryptocurrency.
Image source: Jones, et, al. 2023The past of fiscal literacy successful the U.S. is storied. Benjamin Franklin is often credited with being the archetypal wealthiness advocator and 1 of his astir celebrated (and misquoted) lines ever written, “a penny saved is 2 pence cleared,” appears arsenic 1 of the earliest mentions of user fiscal work successful U.S. punditry.
However the word “financial literacy” appears to person emerged lone recently, with its earliest fashionable usage successful the U.S. dating backmost to 1990. As the conception spread, the U.S. authorities began to follow standards and practices for educating the colonisation by the aboriginal 2000s.
In the years that followd, the fig of millionaires successful the U.S. rose from astir 63,642 successful 1990 to around 25,000,000 successful 2021 – an summation of astir 37,800% implicit 3 decades.
As the satellite of cryptocurrency and blockchain exertion matures, the fig of investors who are ‘in the know’ remains connected the rise. However, the authorities of crypto literacy passim the wide planetary colonisation remains comparatively low.
A 2022 study from CNBC claimed that 57% of U.S. adults are considered financially literate erstwhile it comes to accepted finance. By comparison, a non-scientific survey conducted by “CryptoLiteracy.org” successful 2021 claimed that lone 4% of respondents from the U.S. demonstrated cryptocurrency literacy.
English (US) 