More education and knowledge about crypto-asset investment, according to Treasury officials, “would be beneficial.”
The US Treasury Department has launched a new programme to educate the public about the hazards associated with investing in digital assets.
According to a senior Treasury source, the change comes as the asset class transforms from a specialised industry to mainstream investing, possibly attracting less knowledgeable investors.
The Department’s “Financial Literacy Education Commission” is preparing instructional materials to educate the public about the operation of cryptocurrency assets and how they vary from conventional assets.
According to Nellie Liang, Treasury’s undersecretary for domestic finance, the target market is those who lack access to conventional financial services. As she put it:
“We’re hearing more and more about investors and families acquiring crypto assets, and we’re cognizant of the complexities inherent in the operation of some of these assets.”
Liang said that increased education and awareness “would be beneficial” in this area. Improved education and financial literacy are clearly beneficial to the public, since there has been criticism that regulators’ concentration on “protecting” consumers has resulted in underprivileged populations being excluded from crypto wealth-building potential.
Cleve Mesidor, the creator of The National Policy Network of Women of Color in Blockchain, recently said to Cointelegraph Magazine:
“If they focused more on financial literacy, skills development, and employment development, that would be okay, but they are primarily concerned with consumer protection.”
Twenty separate organisations, including the Securities and Exchange Commission, make up the new education section. The endeavour may allay authorities’ fears about the hazards involved with cryptocurrency investment and might help them continue their aim of protecting investors from industry frauds.
The Treasury Department looks to be adopting a proactive stance on the issue, recognising that digital assets may provide further advantages for cross-border payments and financial inclusion. Liang continued: “We’re just attempting to raise awareness without attempting to eradicate new technology or innovation.”
President Joe Biden of the United States is scheduled to issue an executive order this week detailing the government’s approach on crypto assets. Treasury Secretary Janet Yellen accidentally leaked specifics of the directive today, which also directs the Justice Department, Treasury, and other agencies to conduct a review of the legal and economic implications of central bank digital currency development (CBDC).
Educational efforts are not just the responsibility of government agencies. LeBron James, the NBA’s most valuable player, joined with Crypto.com in January to create an education campaign aimed at teaching children in his hometown of Akron about cryptocurrencies and blockchain technology.
Cointelegraph reported in February that Paxful, a peer-to-peer network, has opened “La Casa Del Bitcoin,” a new educational and training institution in El Salvador dedicated to providing free educational opportunities connected to Bitcoin and cryptocurrencies.
Education is also a two-way street, as top crypto corporations have intensified their lobbying efforts on Capitol Hill in the last year. Companies like as Ripple Labs and Coinbase have increased their attempts to “teach” lawmakers about the cryptocurrency sector and its underlying technology.
Also Read: Thailand Relaxes Taxation On Digital Assets Through 2023
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