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FDIC report shows 6.2% of underbanked households use crypto

FDIC report shows 6.2% of underbanked households use crypto

GrafaGrafa2024/11/13 08:00
By:Mahathir Bayena

A recent Federal Deposit Insurance Corporation (FDIC) report highlighted that in 2023, crypto use was more prevalent among underbanked households than those without any banking access.

The report, released on Nov. 12, surveyed approximately 60,000 households and found that 6.2% of underbanked households engaged in cryptocurrency use, surpassing the 4.8% observed among fully banked households.

Underbanked households are defined as those with a bank account that also rely on nonbank financial services such as payday loans and check cashing.

According to the FDIC, around 14.2% of U.S. households—about 19 million—fell into this category in 2023.

Crypto usage trends showed higher adoption among households with higher education levels, younger age groups, Asian and white households, and working-age individuals.

Income disparities were also noted, with 7.3% of households earning $75,000 or more using crypto, compared to just 1.1% in households earning less than $15,000.

Despite growing adoption in certain segments, only 1.2% of unbanked households used crypto, significantly lower than the 5% among banked households.

The FDIC report revealed that approximately 4.2% of U.S. households, or about 5.6 million, were unbanked in 2023.

These households had no checking or savings accounts at banks or credit unions, with two-thirds relying entirely on cash and the remaining third using 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,” commented FDIC Chairman Martin Gruenberg.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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