Summary:
1.2% of unbanked households use crypto, compared to 6.2% of underbanked and 4.8% of fully-banked households.
A whopping 92% of crypto users hold it as an investment rather than for transactions.
Higher-income households dominate crypto usage with 7% of those earning $75,000+ participating.
The survey reveals demographic disparities with 7.5% of Asian households using crypto compared to 3.2% of Black households.
This marks the first FDIC survey explicitly asking about crypto usage, highlighting its complex adoption landscape.
Crypto boosters have long hailed Bitcoin and other digital tokens as a financial lifeline for the unbanked in America and around the world, reflected in crypto’s current $3 trillion market value. However, recent findings from the FDIC indicate that this perception may not align with reality.
Key Findings from the FDIC Survey
According to Keith Ernst, associate director of the FDIC’s division of depositor and consumer protection, the survey shows that:
- Unbanked households use crypto less than any other group, with only 1.2% participating, compared to 6.2% of underbanked households and 4.8% of fully-banked households.
- A significant 92% of crypto users hold assets primarily as investments, while only 3.3% use it for transactions.
Demographic Insights
The survey highlighted that:
- Only 4.2% of respondents used crypto at all, with 7.5% of Asian households and 5.2% of White households participating versus 3.2% of Black households and 3.5% of Hispanic households.
- Higher-income and more educated households are more likely to use crypto, with 7% of those earning $75,000 or more compared to 1.1% of households earning less than $15,000.
- Age also plays a role, as 9.8% of households aged 25 to 34 use crypto, while only 1.2% of those aged 65 or older do.
The First of Its Kind
This FDIC report marks the first time that researchers specifically asked about crypto usage, revealing a complex picture of its adoption:
- The survey also explored the use of Buy-New-Pay-Later (BNPL) services, with only 3.9% of participants using these services.
- Ernst noted that the current data indicates crypto is not necessarily replacing traditional banking habits, suggesting a need for further exploration of how these technologies may evolve in the future.
These findings challenge the notion that Bitcoin primarily serves the unbanked, instead painting a picture of a demographic that is largely wealthy and banked, raising questions about the true role of cryptocurrency in promoting financial inclusion.
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