The behaviour in finance of the Millennial and Gen-Z population in India is explored in this research paper with respect to digital adoption, lifestyle spending, and investment patterns. A descriptive research design is adopted, and the analysis is based on secondary data collected from 80 research articles published in reputed journals. The results reveal that both generations are greatly influenced by the digital revolution, with high usership of mobile wallets, investment applications, and online banking sites such as Paytm, Groww, and Zerodha. Impulsive buying behaviour and brand loyalty are shaped mainly by social media, peer networks, and advertisements. While the two generations could be dubbed computer-savvy, behavioural differences are apparent. The Millennials (1981-1996), with greater financial liabilities, favour the generally secure, low-risk avenues of investment such as SIPs, real estate, and retirement funds. Gen Z (1997-2012) prefers the high-risk/high-reward financial instruments of the stock market and cryptocurrencies. The study also mentions the effects of regional disparities, where urban youth have a greater voice in fintech or financial literacy, while rural youth are more comfortable with traditional savings. The pandemic has redefined the financial priorities of both generations, enhanced digital financial practices while urged cautious financial strategies. Millennials were thus inclined to long-term savings and debt reduction, while Gen Z appeared to be dipping its toes into decentralized finance and alternative income streams. The ever-evolving technology trends, imminent socio-economic changes, and financial behaviours that are synonymous with the priorities of a certain life stage are the highlights of the study. It calls for longitudinal research in the near future to measure generational change, while stressing the need for region-based financial education and tools designed for the youth's aspirations in a rapidly changing economy.
Purpose â is to provide evidence of how social networks act as an indispensable channel in the cryptocurrency phenomenon and its public perception, analysing the context in which it occurs, as well as the patterns followed and the most commonly used channels. Research methodology â this article explores and provides evidence on the relationship between cryptocurrencies and social networks through the use of digital social listening tools, exploring data retrieved from the most prominent social networks, as well as websites, forums and blogs. Findings â the urgent need to provide an adequate level of financial education in the digital economy. Research limitations â the study should be carried out by age segments to assess whether it is only a problem of the younger population, which are the habitual users of social networks. Practical implications â the cryptocurrency user or investor is aware of the existing risks associated with cryptocurrencies, especially among the young population, without underestimating the influence that social networks have had and continue to have on the perception and acceptance of digital currencies, and even on their popularity. Originality/Value â investing in cryptocurrencies requires social responsibility on the part of institutions, demanding adequate legislation and financial training for potential investors.
The creative environment has transformed because of the digital economy's explosive growth, particularly for digital artists who now produce, distribute, and monetize their work primarily through online channels. To preserve the financial sustainability of digital art actors, this study aims to investigate how digital financial literacy serves as a supporting element in crowdfunding and microfinance. Two hundred respondents working in various digital art domains, including graphics, music, and non-fungible tokens (NFTs), were surveyed using a quantitative methodology. The study's findings, obtained using the Structural Equation Model (SEM) and SmartPLS software, demonstrated that microfinance has a statistically negligible and detrimental impact on the long-term financial viability of actors involved in digital art. Crowdfunding, on the other hand, significantly improves their financial viability. Furthermore, financial sustainability is positively and significantly impacted by digital financial literacy. The impact of microfinance on the long-term financial viability of digital creative players is mitigated by digital financial literacy. To enhance the resilience of creative professionals in an increasingly digital economy, this study emphasizes the importance of integrating financial education with training in digital skills. The study's practical implications include suggestions for legislators, professionals in the creative sector, and academic institutions to develop targeted initiatives that may enhance the financial viability of digital arts practitioners. To further understand the connection between digital financial literacy and the sustainability of the creative economy, further study is advised that it uses a longitudinal approach and cross-national comparisons.
Xiaohang Ren, Wenting Jiang, Kun Duan, Tapas Mishra
As one of the most prominent cryptocurrencies, Bitcoin has been at the forefront of a major revolution in the financial and technological sectors. This study utilizes data from social media to extract the emotional tendencies of investors in the Bitcoin market and analyze differences in investor behavior under various emotional features. We find that when investors exhibit reluctance (such as Sadness and Fear) to buy Bitcoin, it is the opportune moment to invest and achieve returns higher than expected. Conversely, when the emotional tone of investors becomes positive (such as Joy and Love), indicating a tendency to invest, we choose to avoid investing. Our research has also revealed that such emotional cues can assist in better predicting returns in the Bitcoin market. Analyzing market emotions contributes to a deeper understanding of market fluctuations and investor behavior. Our findings help stakeholders recognize the role of subjective emotions in the market and provide them with prudent investment advice: avoid relying excessively on the feelings of others, as this may trigger investment losses.
Santiago CarbĂł-Valverde, Pedro J. CuadrosâSolas, Francisco RodrĂguez FernĂĄndez
Acknowledging the potential threats posed to financial stability by owning cryptoassets combined with a lack of financial literacy, this paper investigates the relationship between financial literacy and cryptocurrency ownership using machine learning methods. Analyzing 2121 survey responses, it shows that financial literacy emerges as a crucial factor in cryptocurrency ownership, even when accounting for other factors such as age, income, and digital activity. A neural network model reveals that a unit increase in financial literacy reduces the probability of cryptocurrency ownership by 0.2. Causal forest analysis indicates that financial literacy bias positively impacts ownership likelihood (a point estimate of 75.30 %). However, the bias-corrected financial literacy measure has a negative effect of â25.40 % on ownership likelihood. This reveals that cognitive biases, particularly overconfidence, as a significant influence on cryptocurrency ownership. These results show that individuals with more financial literacy and with less biased self-assessments are less likely to hold cryptocurrencies.
Purpose In this paper, we empirically investigate how crypto investments in times of economic downturn would affect credit card usage, a widely used payment method that has a significant impact on individual financial well-being. Design/methodology/approach We carry out an ordinary least squares regression analysis and an instrumental variable design on data from the most recent National Financial Capability Study 2021 (NFCS2021). The NFCS2021 collects information about various demographic and financial backgrounds of US adults. Findings We find that crypto investments are associated with a significantly higher likelihood of credit card misuse, as indicated by making only the minim um payments, late payments and using credit cards for cash advances. Meanwhile, social media use is a strong predictor of crypto investments. Results from our analysis are robust after accounting for endogeneity concerns using an instrumental variable design. Originality/value Our findings provide new insights into the influence of emerging financial instruments on delinquent credit card behaviors, which can further intensify individual and household financial instability during periods of market stress. Furthermore, our findings underscore the necessity of improving individual awareness of the high-risk characteristics of cryptocurrencies, despite their increasing popularity in the financial marketplace in the current financial marketplace.
Purpose Rainy-day savings have been an effective measure for maintaining financial stability in times of emergency. Motivated by the rapid expansion of cryptocurrencies, the present study examines how crypto investments could moderate the beneficial outcomes of rainy-day savings for alleviating financial anxiety during the most recent economic turbulence caused by the COVID-19 pandemic. Design/methodology/approach The present study carries out multivariate logistic regression with interaction effects on the most recent 2021 cohort data from the National Financial Capability Study (NFCS). Findings While rainy-day savings relate to less financial anxiety, the effect varies depending on whether an individual has invested in cryptocurrencies. Specifically, this paper finds that crypto investors experience less relief in financial anxiety from rainy-day savings than non-crypto investors. Additionally, crypto investors are more susceptible to financial stressors like job loss and financial fragility, likely due to the financial loss from investing in cryptocurrencies. Practical implications The findings highlight the necessity of implementing policies and regulations, such as the newly approved Markets in Crypto-Assets (MiCA) regulation, that could raise peopleâs awareness of the high-risk nature of cryptocurrencies as well as offering targeted financial education for crypto investors, especially during times of market downturn. Originality/value This is the first attempt to study how crypto investments may weaken the benefits of rainy-day savings in reducing financial anxiety. The findings offer new insights into the beneficial outcomes of rainy-day savings for emergencies in light of individual crypto investment backgrounds. Additionally, findings from the present study also contain important implications given the rapid expansion of the cryptocurrency market as well as future economic turbulence.
This paper explores the evolving role of financial literacy in the context of cryptocurrencies, highlighting key challenges such as market volatility, security risks, and regulatory uncertainty. It also discusses the opportunities that decentralized finance (DeFi), portfolio diversification, and accessible educational resources present for improving financial literacy. The paper emphasizes the need for traditional financial education to adapt to the complexities of digital assets and decentralized systems. Recommendations include integrating cryptocurrency knowledge into curricula and promoting risk management strategies. Future research should focus on regulatory frameworks and the impact of DeFi on financial inclusion.
This research study offers a comprehensive overview of current advancements in financial practices in the United States. This research will examine recent shifts in American financial habits and offer stakeholders guidance on how to effectively manage the evolving financial landscape. A thorough assessment of prior literature reviews and empirical studies on digital finance in the US is part of the research methodology.The literature review focuses on how developments in financial technology (FinTech), regulatory changes, a growing emphasis on sustainability, and shifting consumer behavior have significantly altered the financial sector.. The influence of regulatory barriers, ESG integration, evolving consumer behavior, and the complex interactions affecting US financial practices are the main topics of discussion. The results underscore the significance of digital transformation, regulatory impediments and campaigns, consumer inclinations, the advantages and challenges of decentralized financing (DeFi), and cybersecurity and privacy issues. Recommendations are provided based on the results to enhance regulatory flexibility, raise financial literacy and awareness, fund cybersecurity infrastructure, encourage cooperation and information exchange, welcome responsible innovation, and track and react to market dynamics. By putting these recommendations into practice, stakeholders can better navigate the complexity of digital banking in the US and foster innovation, inclusion, and trust in the digital financial ecosystem while averting the dangers and difficulties that come with it.
The growing popularity of cryptocurrency as an investment choice among millennials demonstrates their inclination toward digital advancements and openness to exploring diverse investment opportunities. The study examines how financial literacy factors impact experience regret, investment decisions, and risk tolerance, while financial literacy also affects investment decisions, with experience regret and risk tolerance acting as a mediator. The study comprises 295 participants from the millennial demographic in Indonesia who are engaged in cryptocurrency investment. The data collection techniques employed in this study involve non-probability sampling methods through the distribution of questionnaires. The analysis in this study employs Structural Equation Modeling (SEM) in conjunction with Partial Least Squares (PLS) analysis tools. The results of this study suggest that financial literacy positively impacts regret experience, investment decisions, and risk tolerance with the respective sample values of 0.146, 0.397 and 0.449. Additionally, regret experience negatively influences investment decisions with a sample value of â0.385, while risk tolerance positively influences investment decisions with a sample value of 0.198. Financial literacy has a negative impact on investment decisions when regret experience acts as a mediator with a sample value of â0.056, but a positive impact when risk tolerance serves as a mediator with a sample value of 0.089. This complex relationship highlights the importance of considering multiple factors, including financial literacy, regret experience, and risk tolerance, in understanding and predicting investment decisions among individuals, particularly in the context of the millennial generation investing in cryptocurrency in Indonesia.
Abstract Australians are embracing new forms of digital finance products and services, which includes purchasing cryptocurrencies and nonâfungible tokens (NFTs). There has been an increase in investment scams associated with cryptocurrencies. In this article, we sought to understand from cryptocurrency and NFT investors, who is vulnerable and what vulnerabilities exist. We surveyed 745 Australians aged 18 and over who have purchased cryptocurrencies or NFTs. We used sociological perspectives of consumer vulnerability that focus on internal and external factors to analyse our findings. We found that both socioeconomic advantaged and disadvantaged Australians are vulnerable. The vulnerabilities include concerns over security, unsolicited advice, limited options for learning, and insufficient financial and IT literacy. The findings suggest that online financial education is needed from trusted independent sources to help combat scams and to keep Australians and their crypto assets safe. We recommend that more opportunities to educate individuals about alternative forms of financial products are offered in compulsory, vocational and higher education settings.
One of the goals of international policy is financial inclusion, which may be attained by individuals who possess financial literacy and are able to make wise financial decisions. The use of financial technology and decentralized finance is one of the key factors shaping the inclusive space. This chapter aims to conduct an inclusive analysis of the role of financial literacy in maximizing the impact of decentralized finance on financial inclusion. The discussion in this chapter contributes to the emerging studies that examine the role of decentralized finance in boosting financial inclusion. Insights from this chapter can improve our understanding of the importance of financial innovation for unprivileged people and can also help regulators appreciate the nexus between fintech and financial inclusion. The chapter also provides a discussion on some difficulties that persist with implementing decentralized finance at a larger scale and how financial literacy plays a primordial role in meeting these challenges and improving how well DeFi works for people, businesses, and governments.
O. Felix Ayadi, Oluseun Paseda, Babatunde Olufemi Oke, Abiodun Oladimeji
Purpose Given the many activities of Nigerian investors in the crypto ecosystem, this paper investigates the level of their awareness, attitudes, risk tolerance, experience, reasons for investing and level of financial literacy. Design/methodology/approach The research approach is based on a self-administered questionnaire. The Organization for Economic Cooperation and Development (OECD) permitted the use of its reliable and validated survey instrument, administered in Malaysia, the Philippines and Vietnam in 2019. The results are tabulated and analyzed. Findings The key results include the participation of respondents, who are generally young males, not fully financially literate but risk-averse. Many held the false view that investing in global markets is a higher risk than in national markets. Their reasons for investing in crypto include the fear of missing out on good opportunities and the desire to have fun. The results also revealed that social media, conversations with non-experts and online articles are among the most used investment information sources, highlighting the role of digital platforms and informal discussions in shaping perceptions and knowledge about cryptocurrencies. Investments in cryptos are financed through savings, regular monthly budgets or borrowed from friends or family. As for specific attitudes to risk, the results suggest that for most respondents, preserving their invested capital is of paramount importance. Originality/value The importance of this research also resides in the possibility of comparing the crypto ecosystem in Asia with Nigeria because the same OECD data instrument is employed in data collection. Moreover, this study is the most comprehensive research about Nigerian investors in cryptocurrencies.
This study investigates the implications of the interaction of financial literacy, regulatory technology, and decentralized finance applications for financial sector development. A two-step analytical regression approach on EViews 10 was used, which performs a one-factor analysis for each variable to identify the individual impact of each factor. A linear FMOLS approach was used to evaluate the cooperative effect of integration. The methodology was implemented on a dataset comprising 2,880 observations from 23 financial institutions in Jordan.The findings support the hypothesized dynamic interrelations between the essential Fintech factors relevant to the sustainable development of the financial sector, including significant and insignificant factors with the impact of inflation, which provides an adequate understanding of Fintechâs evolution. Additionally, the outcomes consider post-2017 regulatory changes that reflect the role of supervision and regulation for the financial sectorâs flexibility and efficiency. Therefore, the results reveal the essential contribution of integrating decentralized finance applications, financial literacy, and regulatory technology to the development of Jordanâs financial sector. Financial literacy serves as a facilitator, regulatory technology is a compliance enabler, and decentralized finance applications are driving forces of innovation and financial inclusion, ensuring a robust and sustainable financial ecosystem. It is shown that the interaction of factors forces the sectorâs development, reflecting the worldâs trend in digital inclusion and viable financial development.
Vaidehi Pandurengan, Badriya Nasser Said Al Shammakhi
Purpose The current research takes a closer look at the investment intention of Generation Z and its relation to investing in a speculative market. The study applies the theory of planned behaviour (TPB) to understand the dominant factors leading to Generation Z investment decisions in speculative markets. The main objective is to identify whether these decisions are learnt decisions or herd behaviours. Design/methodology/approach Structural equation modelling is used to evaluate the research model, and examine the mediation effect of financial literacy using bootstrapping in AMOS software. Information was gathered from 271 students studying at the University of Technology and Applied Sciences. The questionnaire used for the survey was adapted from previous related studies examining the TPB. Findings The findings show financial literacy and behavioural outcome (attitude) are key components associated with investment intention. Motivation to comply (subjective norm) affects the intention to invest if mediated by financial literacy. The subjective norm has no bearing on the intention to invest in a speculative market. This implies social peers have no bearing on their intention to invest unless mediated by financial literacy. Research limitations/implications The main limitation of the study is that the group from which the sample is drawn consists of all students at a state-funded university who receive stipends. This limits the applicability of related findings. Furthermore, the variables have dynamic properties, which implies their impacts may vary over time. Practical implications Generation Z comprises a large number of small investors who can make a significant difference to the overall economic trends of the country. The digital world, which is time- and space-infinite, is shaping the next generation. It is only possible to reach and sway their opinions by conducting extensive behavioural science research. Social implications Academic institutions ought to be viewed as a resource for conducting additional in-depth research on a variety of subjects to assist and shape the current generation for a better future. Originality/value Although the TPB has been used by many researchers to explore the behavioural intention of Generation Z, very few have used financial literacy as a perceived behaviour control to study its direct and indirect effects on behaviour intention.
Cryptocurrencies and blockchain have become a global phenomenon transforming peo-ple's relationships with technology and offering innovative tools for businesses and individuals to strive in a digital age. However, little is still known about the main drivers of cryptocurrency ownership, especially in emerging markets. Based on a representative online survey among 573 Brazilian digital platform investors, we find that crypto investors tend to be young, male, more tol-erant to risk, less optimistic in their economic views, and consider themselves as âbetterâ investors compared to non-crypto online traders. While crypto and non-crypto investors have similar edu-cational backgrounds, our results show that cryptocurrency literacy positively and strongly relates to cryptocurrency ownership and intentions to invest in cryptocurrency. A gender gap among cryptocurrency investors has been confirmed. The findings further suggest that sophisticated in-vestors are more likely to hedge pessimistic economic expectations using cryptocurrency than their unsophisticated peers. We also find significant heterogeneity among cryptocurrency investors (e.g., early x late adopters) on attitudes and beliefs. The insights into digital investors' intentions to invest in cryptocurrency can be valuable for policymakers in designing strategies for the broader adoption of digital assets in the era of a decentralized economy, considering the planned adoption of CBDC in Brazil.
Following the judgment Hedqvist in 2015, it appeared settled that cryptocurrencies fall within the same (Value Added Tax) VAT exemption as their more traditional counterparts. Discussions however have recently emerged around Non-Fungible Tokens (NFTs), for which an exemption appears not to be in reach. The article argues that a re-evaluation is now necessary. Most crypto-assets have proven themselves to be useful, and in fact used, predominantly for speculative purposes only, i.e., as high risk investments which might generate significant returns or losses. As such, the paper argues that cryptocurrencies and other volatile NFTs should be placed on the same footing, and discusses whether they are not in fact properly classified as âother securitiesâ. VAT, Crypto, Bitcoin, Ethereum, NFT, Exemption, Financial Services
Samuel Oladiipo Olabanji, Tunbosun Oyewale Oladoyinbo, Christopher Uzoma Asonze, Chinasa Susan Adigwe · 6 authors
The integration of cryptocurrencies, particularly Bitcoin, into retirement savings plans has recently garnered significant attention. This interest has been amplified by the U.S. Securities and Exchange Commission's approval of Bitcoin Exchange-Traded Funds (ETFs) in January 2024 and Fidelity Investments' decision to include Bitcoin in their 401(k) plans. These landmark developments represent a paradigm shift in retirement investment strategies, merging traditional financial planning with the dynamic and volatile world of cryptocurrencies. The entry of Bitcoin introduces novel challenges, including increased volatility and regulatory uncertainty, necessitating a comprehensive examination of its impacts on retirement savings. The study sought to explore the role of Financial Technology (FinTech) in managing these risks and assess the adequacy of current regulatory frameworks. Employing a quantitative research approach, the study collected data from 386 participants, including FinTech practitioners and investment portfolio managers through a survey that combining closed-ended and open-ended questions. Multiple regression was used to analyze the relationships between variables such as FinTech integration, regulatory compliance, and the risk associated with cryptocurrency-inclusive retirement portfolios. The study revealed that the inclusion of Bitcoin significantly increases portfolio volatility. It also found that advanced FinTech data management techniques significantly enhance risk mitigation, while current regulatory frameworks are inadequate for governing the inclusion of cryptocurrencies in retirement plans. A comprehensive framework combining FinTech and regulatory compliance was shown to effectively reduce investment risks. The study recommends cautious consideration of cryptocurrencies in retirement portfolios, with an emphasis on assessing the risk appetite of participants. It advocates for dynamic regulatory frameworks and enhanced use of FinTech for real-time risk management. The study suggests that retirement plan providers should adopt an integrated approach, combining technological innovations with regulatory oversight, to navigate the complexities of cryptocurrency investments effectively.