FDIC Survey Reveals Bitcoin Users Are Predominantly Wealthy

A recent FDIC survey of 30,000 households has revealed that Bitcoin users tend to be predominantly wealthy, white, or Asian. Despite the common narrative that cryptocurrencies serve as a financial lifeline for the unbanked, the data indicates otherwise.

Key Findings from the FDIC Survey

• Only 4.2% of respondents reported using cryptocurrency.
• Among users, 92% held Bitcoin primarily as an investment, with only 3.3% utilizing it for transactions.
• The unbanked demographic used crypto the least at 1.2%, compared to 6.2% of underbanked and 4.8% of fully banked households.

Demographics of Bitcoin Users

The survey highlighted that cryptocurrency usage varied significantly across different demographics:

• 7.5% of Asian households and 5.2% of White households reported using crypto, whereas only 3.2% of Black households and 3.5% of Hispanic households did.
• Higher-income households (earning $75,000 or more) showed a usage rate of 7%, while only 1.1% of households earning less than $15,000 used it.

Implications for Financial Inclusion

The findings challenge the notion that cryptocurrencies are enhancing financial inclusion. FDIC officials noted that the current usage patterns do not support the idea that crypto is replacing traditional banking habits. The survey also marks the first time the FDIC specifically inquired about cryptocurrency usage in its biennial report.

Future Considerations

As the cryptocurrency market continues to evolve, the implications of these findings could influence future policies aimed at improving financial inclusion. The FDIC's ongoing efforts to understand the role of crypto in American households will be crucial in shaping these initiatives.