The use of crypto in 2023 was most common in “underbanked” households, those that use checks or nonbank loans to meet their banking needs, the Federal Deposit Insurance Corporation (FDIC) has revealed.
the FDIC’s Nov. 12 report surveyed around 60,000 households, finding that 6.2% of underbanked households used crypto compared to 4.8% of households with full banking access.
The underbanked are those who have a bank account but also use nonbank financial services like payday loans and check cashing. Around 14.2% of US households, about 19 million, were considered underbanked last year.
Crypto usage was also higher among the higher-educated, younger households, Asian and white households, and working-age households.
There were also income level disparities, with 7.3% of households with income of $75,000 or more using crypto, compared with just 1.1% of households with less than $15,000 in income.
Among all households that used crypto, the vast majority held digital assets as an investment, and just 4.4% of households that used crypto did so to make purchases online.
Specific uses of crypto by household income level. Source: FDIC
However, it also reported that only 1.2% of unbanked households used crypto, compared to 5% of banked households.
Around 4.2% of US households, about 5.6 million, were unbanked in 2023, meaning they had no checking or savings account at a bank or credit union.
The FDIC survey found two-thirds of unbanked households relied entirely on cash, while a third relied upon a combination of prepaid cards or online payment services such as PayPal, Venmo or Cash App.
“This survey reveals that significant disparities in access to the banking system for minority, lower income, disabled, and single-parent households still exist and need to be addressed,” said FDIC Chairman Martin Gruenberg.
Earlier this month, Coinbase discovered “over 20 examples” of the FDIC advising banks to steer clear of crypto-related banking services.
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