Wall Street analysts may now have to study cryptocurrency and blockchain technology. The CFA institute has added cryptocurrencies and blockchain technology to its curriculum. The topics will be a part of new reading termed as Fintech in Investment Management and will be introduced in 2019.
CFA and Cryptocurrency
Stephen Horan, Managing Director for general education and curriculum at CFA Institute in Charlottesville told Bloomberg, “We saw the field advancing more quickly than other fields and we saw it as more durable.” Hence the CFA decided to add them to its exam curriculum. He also stated that cryptocurrencies and blockchain technology were not a passing fad.
Every year, finance professional and analysts appear for the CFA exam to achieve a license. The three level exam is notorious for being one of the toughest to crack. Cryptocurrencies and blockchain technology will be added to Levels 1 and 2. The newer topic will be clubbed alongside artificial intelligence, machine learning and other similar fintech topics.
The study material will be available by August 2018 for candidates who have registered to take the exam in 2019. It is imperative for finance professionals to have knowledge about cryptocurrencies and blockchain technology. Hence the CFA Institute decided to add them to its curriculum.
Why learn about cryptocurrencies and blockchain
As said by CFA, “Cryptocurrencies can play a significant role in increasing global economic participation and protecting against government overreach.” A large majority of the world population does not have access to banking services. Thus they struggle to become a part of the mainstream.
Cryptocurrencies have huge potential and could bring the next financial revolution. A person only needs a device connected to the internet in order to send or receive cryptocurrencies. All digital currency holdings are stored on the blockchain and can be accessed through a wallet. The CFA Institute strives to create better professionals who can make smarter decisions in finance industry. Hence the CFA decided to add these new topics.
Wall Street has given mixed reactions to digital tokens. Some analysts are skeptical about its future while others like Tim Draper and Michael Novogratz have thrown their weight behind digital currencies.
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