According to Cointelegraph: A team of researchers from the University of Cincinnati has developed a crypto literacy scale (CLS) to standardize and measure economic and financial knowledge related to consumer and policymaker understanding of cryptocurrencies and associated technology. The research paper, titled "Measuring Crypto Literacy," highlights the gap between traditional financial literacy and crypto literacy, emphasizing the need for a crypto literacy scale and policies supporting cryptocurrency education and literacy efforts globally.
The paper states that measuring financial literacy has encouraged policymakers and educators to create programs that improve financial decision-making and increase financial empowerment. However, there is no similar corresponding scale to measure crypto literacy. The researchers note that financial literacy plays a crucial role in preventing scams by equipping individuals with the knowledge, skills, and confidence to make informed financial decisions.
To develop the CLS, the team considered cryptocurrency literacy separate from overall financial literacy. They studied various aspects of cryptocurrency and identified the basic knowledge requirements necessary to demonstrate a basic understanding, which they distilled into 10 questions. The questions were not shared in the paper, but accompanying images show that respondents were asked about their experience with cryptocurrency.
The history of financial literacy in the United States dates back to Benjamin Franklin, who is often credited with being the first wealth advocate. The term "financial literacy" appears to have emerged more recently, with its earliest popular usage in the U.S. dating back to 1990. As the concept spread, the U.S. government began adopting standards and practices for educating the population by the early 2000s.
In the years that followed, the number of millionaires in the U.S. rose from approximately 63,642 in 1990 to around 25 million in 2021 — an increase of about 37,800% over three decades. As the world of cryptocurrency and blockchain technology matures, the number of investors who are "in the know" continues to rise. However, the state of crypto literacy throughout the general global population remains relatively low.
A 2022 report from CNBC claimed that 57% of U.S. adults are considered financially literate when it comes to traditional finance. By comparison, a non-scientific survey conducted by CryptoLiteracy.org in 2021 claimed that only 4% of respondents from the U.S. demonstrated cryptocurrency literacy.