Nicosia, Cyprus. Cyprus Securities and Exchange Commission (CySEC) officer Elena Karkoti said digital financial literacy must begin early as children are already immersed in a world of instant, invisible money. She said understanding digital finance is becoming essential rather than optional.
Digital money embedded in daily life
Karkoti said digital finance is already embedded in young people’s daily routines, with money “invisible, instant, and embedded in apps, games, subscriptions, and online platforms they use daily”.
She cited Central Bank of Cyprus data indicating that around 75 per cent of transaction volume in Cyprus is carried out through cards and other non-cash instruments, meaning cash is no longer the default for everyday transactions.
“The question is no longer whether young people will use digital money. They already do. The real question is whether they will understand it,” she said.
OECD data shows literacy lagging behind usage
Referring to data from the Organisation for Economic Co-operation and Development, Karkoti said 96 per cent of people across OECD countries have made or received a digital payment, describing digital finance as the norm.
She warned that understanding has not kept pace with adoption, citing OECD research showing that around 40 per cent of adults who use digital payments do not meet a minimum digital financial literacy benchmark.
In Cyprus, she said the OECD found an average digital financial literacy score of 44 out of 100, with about 10 per cent reaching a basic safety threshold, figures she said increase exposure to fraud and poor decision-making.
“In simple terms, people are using digital money every day without fully understanding how it works, what data they share, or what risks they face,” she said.
Digital financial literacy as a basic life skill
Karkoti said teaching children and teenagers how digital money functions should be treated as a basic life skill.
Do you feel confident you understand how digital payments work and what risks they involve?