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The U.S. Treasury Department is set to educate people on the risks of investing in cryptocurrencies as the crypto market gradually makes its way into the mainstream. The department, through the Financial Literacy Education Commission, will organize outreach and create educational materials to educate people on how crypto works.
The initiative will also include differentiating crypto investments from other forms of investments and informing people about the high volatility in the digital assets market.
U.S. Treasury To Educate People On The Volatility In Crypto Investment
Treasury’s undersecretary for domestic finance, Nellie Liang, stated that Treasury will look to reach those with limited access to mainstream financial services. Liang added that some of the digital assets operate in a complex environment, which may not be too straightforward for people to grasp.
As a result, some people do not have full knowledge of the risks of digital currencies before delving into them. The Treasury will try to reach out to these people to inform and educate them on the risks of these asset classes.
“It felt like this is an area also where more education (and) more awareness could be helpful,” Liang noted.
Regulators Are Concerned About The Risks Of Crypto In The Financial System
The initiative is a response to regulators’ concerns that crypto assets could pose high risks to the financial system as they become increasingly popular.
Last year, cryptocurrencies hit $3 trillion in total value, although the current dip in the market has slashed that value by more than 30%. According to a University of Chicago research, about 14% of Americans invested in cryptocurrencies in 2021. This number is going to grow as digital assets become increasingly popular in the mainstream.
Companies like FTX and Crypto.com are driving mainstream adoption with enticing marketing campaigns and the use of athletes and celebrities to promote digital assets. The education unit of the Treasury Department comprises 20 different groups, including exchange commission and securities.
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