A new report suggests cryptocurrency owners should check their financial literacy.
The Bank of Canada report published on August 31 found that those with low financial literacy were twice as likely to own cryptocurrency compared to the highly financially literate.
The Bank of Canada used the Cash Alternative Study to determine these results. Researchers estimated that 47% of Canadians are highly financially literate, 35% have a medium level and 18% have a low level. Eight percent of those with low financial literacy own cryptocurrencies compared to 4% of highly financially literate Canadians owning them.
The study was conducted between August and September of 2019, when respondents answered questionnaires focusing on their cash use, adoption of digital payment methods and views about the effects of cash disappearing from the economy.
Researchers calibrated the sample weight to match the socio-demographic composition of Canadian citizens to reduce bias in areas such as gender, income, education and employment status. Of Canada’s 37.5 million population in 2019, 84% of Canadians heard of cryptocurrencies and 5% owned them.