The latest insights from the Federal Reserve shed light on the evolving landscape of cryptocurrency ownership and usage among American adults in 2023, indicating both notable shifts and persistent patterns in adoption and behavior.

According to the Federal Reserve's Survey of Household Economics and Decisionmaking (SHED) published on May 21, approximately 18 million U.S. adults reported owning or using cryptocurrency in 2023. This figure marks a decline from previous years, with 7% of surveyed adults indicating crypto usage in the 12 months leading up to October 2023, down from 10% in 2022 and 12% in 2021.

Of particular note is the dwindling number of individuals utilizing crypto for financial transactions, with just 1% of adults utilizing cryptocurrency as a payment method or for money transfers, representing a notable decrease from the previous year. In contrast, 7% of adults reported purchasing or holding crypto as an investment, indicating a continued interest in cryptocurrency as a speculative asset.

These findings challenge earlier assertions, such as Coinbase's claim that 52 million Americans own cryptocurrency, highlighting a stark contrast between industry estimates and actual reported usage. Despite this disparity, the survey delves into the motivations behind crypto usage, revealing that nearly 30% of those who engaged in financial transactions with crypto did so due to the preference of the receiving party for cryptocurrency, with distrust in traditional banking institutions emerging as a less cited reason.

Moreover, the survey identifies demographic trends within the crypto community, with individuals earning annual incomes of $100,000 or more being more likely to have engaged with cryptocurrency in any capacity. Millennials (aged 30 to 44) and Generation Z adults (aged 18 to 29) emerge as the primary cohorts driving crypto adoption, with men displaying a threefold higher likelihood of crypto usage compared to women.

Notably, Black and Hispanic adults stand out as the most common users of cryptocurrency for financial transactions, underscoring the role of cryptocurrency in financial inclusion. Asian adults, on the other hand, comprise the largest demographic of crypto investors, while White adults exhibit the lowest propensity for crypto usage across all categories.

The survey, conducted in October 2023 with 11,488 participating U.S. adults aged 18 and older, provides a comprehensive snapshot of cryptocurrency ownership and usage trends, offering valuable insights into the evolving dynamics of digital asset adoption in the United States.