Digital technology has made financial services borderless and allowed access to other countries’ financial products and services. Financial markets have become more digitized, and new currencies have been birthed. The advent of this global digitized financial economy poses challenges for players and investors alike.
Therefore, it is essential to understand the new trends welcomed by emerging technologies and keep up with the changing tools affecting the markets. Therefore, there is a need for financial literacy to equip individuals with the requisite knowledge of the changing global markets.
The eGold developed by an oncologist, Douglas Jackson, began the financial space’s evolution through digital technology. Since then, the global financial market has witnessed a digitized advancement in markets and commodities. Before now, the financial sector comprised stagnant banking systems with obsolete infrastructures that take days and sometimes weeks to complete transactions around the world.
Today, eCurrencies and cryptocurrencies have flooded the global financial space. Governments are finding new ways to develop local currencies into a more digitized and acceptable medium of trade and exchange.
In 2019 the Chinese government unveiled the country’s digital currency called the digital yuan (e-CNY), which began trial in April 2020. Likewise, President Muhammadu Buhari of the Federal Republic of Nigeria, on the 25th of October 2021, unveiled the Central Bank Digital Currency (CBDC) called the eNaira.
According to Atlantic Council’s Geoeconomics Center, over 75 other countries explore digital currencies. In contrast, island countries like the Bahamas, Saint Kitts and Nevis, Antigua and Barbuda, Saint Lucia, and Grenada have fully launched into space. Therefore, it is evident that as governments are developing and backing eCurrencies within their markets, there is a need for financial literacy to provide financial inclusion amongst citizens.
As a consequence of the changing financial structure, digital financial literacy has become essential for educating and empowering individuals to evaluate their options in the financial marketplace and take suitable actions in a way that is relevant to their lives. Evidence shows that digital financial literate individuals are more likely to have a fulfilled life, more savings, and greater economic independence.
Digital financial literacy has become recognized as a requirement for effective financial inclusion and has gained an important position in the policy agenda of many developed countries. The goal of digital financial literacy is to contribute to poverty reduction and economic inclusion objectives of developing economies. Hence, it is significant for developing countries like Nigeria to embrace financial academies to support the government’s effort in enhancing human capital development so that citizens can be more financially independent to allow economic growth and development.
With digital technologies changing the value proposition of financial products, services, and digital currencies, educational institutions invested in providing financial literacy for Nigerians like OBG financial academy, which leverages market insights and innovative tools to educate citizens on how best to navigate the new financial space should be instituted.
OBG Academy also provides expanded access to financial knowledge, tools, and the requisite resources needed for financial freedom. It enhances financial inclusion, promotes wealth creation and human capital development.
Digital financial literacy makes a difference in the quality of life. It equips citizens with the knowledge of financial investments, gives them the discipline to save and ensures they enjoy a dignified life with little dependence on governments and their provisions. Financially literate individuals can benefit the economy by encouraging genuine competition, forcing innovations and improving efficiency.
