POLICY RECOMMENDATIONS Fiscal Health

Policy Recommendation 6:

States considering blockchain and cryptocurrency could first create a public communications campaign to elevate the financial literacy of the public.

State Examples

Georgia House Bill 681 (2021) implements a financial literacy program to be taught to students in 10th or 11th grade. The program includes cryptocurrency on the curriculum list and aims to expand basic understanding among the public.

Connecticut Senate Bill 3 (2022), currently progressing through the Connecticut House, would require the Board of Regents for Higher Education to create an educational program to assist small businesses with adapting to the aftermath of the COVID-19 pandemic through courses in various subject areas. This includes educational material on virtual currency and blockchain.

Additional Resources

ƒ U.S. Secret Service: Cryptocurrency Awareness Hub — https:// www.secretservice.gov/investigation/DigitalAssets

The Fiscal Health Subcommittee approved this recommendation citing the lack of familiarity that much of the public and even some legislatures have with cryptocurrency. The subcommittee believes that public education on the topic is an important first step.

A November 2021 Pew Research Center poll found that only 16% of Americans reported having invested in, traded or used cryptocurrency.1 Men were twice as likely as women to report using some form of cryptocurrency. Additionally, only about 24% of Americans reported that they had heard “a lot” about cryptocurrency.2 These statistics illustrate the limited level of use and understanding of digital assets and blockchain technologies, despite their proliferation in recent years. Perhaps even more concerning is the lack of understanding that virtual currency investors have about their own investments. Survey data indicates that over one third of cryptocurrency investors know “little to nothing” about cryptocurrency.3 While they have myriad beneficial uses, cryptocurrencies come with risks that include volatility, cyber-fraud and cyber-theft. More education is needed for the public to safely use, understand and invest in blockchain and cryptocurrency.

ƒ National Credit Union Administration: Understanding the Ins and Outs of this Cryptocurrency — https://www.ncua.gov/newsroom/ncua-report/2017/rise-bitcoin-understanding-ins-and-outs-cryptocurrency

Endnotes

1 Perrin, A. (2021, Nov. 11). 16% of Americans say they have ever invested in, traded or used cryptocurrency. Retrieved November 8, 2022, from Pew Research Center: https://www. pewresearch.org/fact-tank/2021/11/11/16-of-americans-say-they-have-ever-invested-intraded-or-used-cryptocurrency/

2 Ibid.

3 Vega, N. (2021, March 4). More than 1 in 3 cryptocurrency investors know little to nothing about it, survey finds. Retrieved November 8, 2022, from CNBC Make It: https://www. cnbc.com/2021/03/04/survey-finds-one-third-of-crypto-buyers-dont-know-what-theyredoing.html