September 25, 2023

Unbanked Americans Using Cryptocurrencies Reach 13%

Crypto Keeps Drawing Attention

The usage of cryptocurrencies has become a very significant issue for the US Federal Reserve. Digital assets got included in its survey for the first time for better understanding. The Fed seeks to understand how adult users cope with new payment trends.

The survey about the economic stability of households in the US was on May 23. It included such topics relating to the involvement of Americans with cryptocurrencies. The US Federal Reserve also made the survey to cover different topics.

The said survey was carried out among eleven thousand American adults. It stretched from October to November 2021 to gain insight into their economic conditions. It also sought to know what kind of investments they were involved in.

The survey revealed that a large number of high-earning adults held cryptocurrencies as investments. These were majorly among those who earned up to $100,000 and more. The report stated that those who had crypto strictly for investment were disproportionately high-earners. 

The research ended by saying people using crypto as an investment has increased this year. It is a significant increase from those of last year. And importantly, the numbers surpass those using crypto for transactional purposes.

This development can be directly interpreted as confidence in crypto on the part of adults. Such proportions might not have been envisaged a few years ago.

Use Cases of Cryptocurrencies in the United States

Of all adult respondents, twelve percent said they bought cryptocurrencies just for investment. In contrast, two percent use cryptocurrencies in transactions or to send funds to their family. Just a percentage use it to send funds to people outside the country.

This could be interpreted that few people in the US still look favorably on the old remittance system. And more are shifting from established banking for international payments.

More Investments than Just Payments

99% of those who simply use crypto for investment also have bank accounts. On the other hand, 13% of unbanked people use crypto for transactions. They do so rather than for absolute investment purposes.

The survey went further to reveal that 89 percent of non-retired investors have a retirement plan. The Federal Reserve showed that 27% of unbanked without credit cards use crypto for payments. And 7% of the same unbanked use cryptocurrencies as an investment plan.

Broadly, the survey revealed that crypto adoption in the US is growing rapidly. It equally showed that most people want to use them as investments before payment methods.

This might not be anything surprising considering the advocacy of politicians. There is a political push seeking ways of promoting cryptocurrency usage and boosting the industry.  

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