The US Department of Treasury (DOT) has outlined plans to establish an education program to inform people of virtual crypto investments and their risks. The DOT is convinced that more awareness of the dangers of digital asset investing would mitigate financial losses, especially as the market is on the mainstream level.
A subsection of the DOT, Financial Literacy Education Commission, is tasked with providing educational materials and tutoring the public on how virtual currencies work and how they are different from fiat currencies. According to the DOT, the targeted demography is those with a high barrier of entry to financial products and services.
Nellie Liang, the Treasury’s secretary, stated it was high time they educated the people on how these digital assets work and the complications surrounding them. In her words, she said cryptocurrency is one area that required more awareness.
Improving Financial Literacy
Many criticisms are drawn from the fact that regulators are hell-bent on shutting the underprivileged off from using blockchain services in the name of protecting them rather than emancipating them from their ignorance. The SEC’s autocratic style is a typical example of that, which has been widely condemned constantly by the crypto community.
Building wealth through crypto and safeguarding your assets are two separate things that will take more than enforcing regulations. Instead, providing better education will make these individuals financially literate and keep them at a competitive advantage.
Cleve Mesidor chipped in some words regarding regulators’ approaches in enforcing crypto laws. The creator of the National Policy Network of Women of Color said that it would be applauded if regulators paid more attention to financial literacy. But, focusing on customer protection will only derail the crypto industry’s growth and limit access to its services.
Accessing the Benefits of Virtual Currency and the Educational Program
The educational program will ease investors’ fears about regulating digital currencies and elucidate the risks of investing. Simultaneously, the initiative will aid in its goal to safeguard investors from falling into scams.
The DOT is being pragmatic here, as it understands that digital currencies could bolster financial inclusion and facilitate cross-border transactions. Raising awareness is the only way they can do this without affecting innovation.
On Tuesday, details about an executive order on crypto expected to be signed by the U.S President later in the week leaked from the DOT. The executive order, made to outline strategies to deal with cryptocurrencies, will allow the DOJ, DOT, and others to analyze the financial impact of launching a CBDC.
Providing educational training programs on crypto investments isn’t restricted to the government alone. Early this year, basketball player LeBron James collaborated with Crypto.com to establish a program targeted at Akron students to learn more about blockchain.
A month after, Paxful unveiled an educational center in El Salvador to teach students crypto. Even government agencies aren’t left out, with crypto firms like Coinbase are intensifying their efforts to educate regulators on the benefits of blockchain.