A US Treasury Department awareness campaign aims to assist investors in understanding the risks associated with cryptocurrencies as they come into the mainstream.
By creating educational materials and organizing outreach, the Treasury’s Financial Literacy Education Commission informs the public about how crypto assets work and how they differ from other forms of payment.
In an interview, Treasury undersecretary for domestic finance Nellie Liang said Treasury would target populations with limited access to mainstream financial services.
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According to Liang, the number of investors and households purchasing crypto assets is growing, and we understand the difficulties associated with some of these assets.
More education (and) more awareness is also needed in this area.
As crypto-assets gain in popularity, regulators are increasingly concerned that they might pose a risk to the financial system.
According to University of Chicago research, the value of cryptocurrencies surpassed $3 trillion (roughly Rs. 2,29,39,400 crores) last year, with 14 percent of Americans investing in digital assets as of 2021.
Several companies, including Crypto.com and FTX, are using a variety of marketing campaigns featuring celebrities and athletes to drive mainstream adoption.
The Treasury Department’s education unit consists of 20 different agencies, including the Securities and Exchange Commission.
Gary Gensler, the council chair, described the crypto industry last year as “rife with fraud, scams, and abuse.” The Biden administration and many lawmakers believe a regulatory framework is needed for digital assets, but no agreement has been made.
The Treasury is aware that crypto has risks, but it can also offer benefits, such as improving cross-border payments or strengthening financial inclusion, said Liang.
It’s not our intent to outlaw new technology or innovation but to raise awareness.