tl;dr
The article discusses a decline in financial literacy among digital asset users, citing a report by PiP World revealing low literacy rates and the potential consequences. It highlights the need for education and protection for investors in the digital asset space. Additionally, it mentions Australia...
DIGITAL ASSET LITERACY DIPS; AUSTRALIA UNIVERSITY SETS UP EDUCATION DRIVE
Amid the growing number of people investing in digital assets, a new report from EdTech firm PiP World has revealed a decline in financial literacy among digital asset users, a worrying trend that could have dire consequences.
Data gathered by PiP World showed that financial literacy rates among digital asset users currently hover around the 25% mark, which it says is far below average. The startup with a focus on gaming noted that the digital asset ecosystem is down 8% from the global average, and the effects are already glaring. The data were compiled from the responses of over 12,000 anonymous individuals.
“The findings of this report highlight an urgent and undeniable truth – financial literacy in the crypto space is dangerously low,” said PiP World CEO Saad Naja.
While traditional finance has a higher literacy rate, the legacy markets are often filled with an array of material and financial advisors to guide investors on the best decisions to protect their portfolios. For digital assets, the reverse is the case, with individuals navigating the murky waters independently with little to no financial strategy.
Protecting investors
Governments worldwide are racing to implement new guardrails to protect investors from the dangers associated with digital assets. Several jurisdictions mandate that digital asset firms include a prominent warning in their promotions that digital currency trading is risky and may lead to loss of funds. Some regulators are outright banning the provision of leverage services, while others are outlawing derivatives for all classes of investors.
Australia kickstarts blockchain education drive
Elsewhere, Wollongong University in Australia has picked up the gauntlet to educate its students on blockchain technology, setting the pace for other regional institutions amid the country’s rapid digitization.
Australia’s push toward Web3
Aware of Web3’s transformational capacities, the Australian government is backing the technology’s mainstream adoption. A $2 billion deal with Microsoft to provide blockchain training to citizens indicated a strong show of commitment, while research into a central bank digital currency (CBDC) reiterated its desire. However, the government is proceeding with caution and is keen on ridding the ecosystem of scams, fraud, and other nefarious activities.