FDIC Report Reveals Higher Crypto Use Among Underbanked Households in 2023

In 2023, cryptocurrency usage was more prevalent among U.S. households with limited access to traditional banking, according to a report by the Federal Deposit Insurance Corporation (FDIC).

The survey of 60,000 households revealed that 6.2% of underbanked households used crypto, compared to 4.8% of fully banked households. “Underbanked” refers to those with a bank account but also relying on alternative financial services like payday loans.

Crypto adoption was higher among younger, more educated, and higher-income households. Of those earning $75,000 or more, 7.3% engaged with crypto, while only 1.1% of households making less than $15,000 did. Most users held crypto for investment, with just 4.4% using it for purchases.

The FDIC report also noted that 1.2% of unbanked households used crypto, compared to 5% of banked households. Approximately 4.2% of U.S. households were unbanked in 2023, often relying on cash or digital payment services like PayPal.

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FDIC Chairman Martin Gruenberg highlighted the ongoing disparities in financial access, especially among lower-income, minority, and single-parent households, calling for action to address these gaps. Additionally, Coinbase recently disclosed that the FDIC has been advising banks to avoid crypto-related services.

Alexander Stefanov