Measuring Cryptocurrency Literacy

56 Pages Posted: 28 Aug 2023 Last revised: 12 Mar 2024

See all articles by Michael Jones

Michael Jones

University of Cincinnati

Truong (Jack) Luu

University of Cincinnati - Department of Information Systems

Binny Samuel

University of Cincinnati - Department of Information Systems

Date Written: March 10, 2024

Abstract

In this article, we present the construction and validation of a scale for measuring cryptocurrency knowledge. As users continue to adopt digital currencies and government agencies introduce more regulatory legislation, researchers need to understand the general public's degree of literacy in this area. 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 cryptocurrency literacy. We address this gap by developing a robust survey instrument. The scale's development involves a rigorous process of item generation, analysis, and criterion validity. The resultant Cryptocurrency Literacy Scale (CLS) is a standardized measurement tool that contributes to ongoing efforts in financial education and regulation in the context of digital currencies and blockchain technology. We suggest several paths for future research in the emerging field of cryptocurrency literacy.

Keywords: financial literacy, cryptocurrency literacy, cryptocurrency, item response theory (IRT), blockchain

JEL Classification: G41, G53

Suggested Citation

Jones, Michael and Luu, Truong (Jack) and Samuel, Binny, Measuring Cryptocurrency Literacy (March 10, 2024). Available at SSRN: https://ssrn.com/abstract=4541401 or http://dx.doi.org/10.2139/ssrn.4541401

Michael Jones (Contact Author)

University of Cincinnati ( email )

Carl H. Lindner Hall 2925 Campus Green Drive
PO Box 0371
Cincinnati, OH 45221-0211
United States

Truong (Jack) Luu

University of Cincinnati - Department of Information Systems ( email )

Binny Samuel

University of Cincinnati - Department of Information Systems ( email )

606 Carl H. Lindner Hall 2925 Campus Green Drive
PO Box 210211
Cincinnati, OH 45221-0211
United States

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