The Federal Reserve recently conducted a survey that found a significant decline in adult U.S. cryptocurrency adoption. The survey, known as the Survey of Household Economics and Decisionmaking (SHED), found that only 1% of U.S. adults reported using crypto for payment or to send money in 2023. This figure represents a 50% decrease from the previous year, indicating a slowdown in crypto adoption for financial transactions.
The survey, which included 11,488 U.S. adults aged 18 and older, reported that approximately 18 million U.S. adults used or owned crypto in 2023, down from previous years. The percentage of U.S. adults using crypto in 2023 was 7%, a drop from 10% in 2022 and 12% in 2021. This decline suggests that the crypto market may be experiencing a period of consolidation after the rapid growth seen in previous years.
The survey also shed light on the reasons behind crypto usage for financial transactions. Nearly 30% of respondents who used crypto for such purposes stated that it was because the recipient preferred cryptocurrencies. Notably, a lack of trust in banks was the least mentioned justification, showing that skepticism toward conventional financial institutions is not the main driver of crypto adoption.
In terms of demographics, the survey found that individuals with annual incomes of $100,000 or more were more likely to have used cryptocurrencies for any reason. Adults in Generation Z (ages 18 to 29) closely followed Millennials (aged 30 to 44) as the largest group of crypto users. Additionally, men were three times more likely to use cryptocurrencies compared to women.
The survey highlighted that Black and Hispanic adults were more commonly engaged in crypto usage for financial transactions, while Asian adults were the largest demographic using crypto as an investment. Conversely, white adults were the least likely to use cryptocurrencies for any reason.
The findings from the Federal Reserve survey significantly differ from Coinbase's claim that 52 million Americans own cryptocurrencies. Coinbase did not provide any response on how it arrived at this figure, which is significantly higher than the number reported by the Fed survey.
The decline in crypto adoption for financial transactions may be attributed to various factors, including regulatory uncertainty, market volatility, and a lack of mainstream adoption. However, the survey also suggests that cryptocurrencies are still being used by a significant number of U.S. adults, particularly for investment purposes. As the crypto market continues to evolve, it will be important to monitor trends in adoption and usage to understand the long-term potential of digital assets.
