A recent survey by the Federal Reserve reveals a decline in the number of U.S. adults engaging with cryptocurrency. The Household Economy and Decision Making Survey (SHED), released on May 21, shows that about 18 million U.S. adults reported owning or using cryptocurrency last year. This represents 7% of surveyed adults, a drop from 10% in 2022 and 12% in 2021.

Fed’s Crypto Study Draws Interest

The survey also highlights that only 1% of adults used cryptocurrency for payments or money transfers, which is half the rate from the previous year. Meanwhile, 7% bought or held cryptocurrency as an investment. The Fed’s findings contrast sharply with Coinbase’s estimate that 52 million Americans own cryptocurrency. Coinbase has yet to explain how it arrived at this figure.

Among those using cryptocurrency for transactions, nearly 30% did so because the recipient preferred it. The least common reason cited was a lack of trust in banks. The survey also noted that individuals earning $100,000 or more annually were more likely to use cryptocurrency.

Survey Insights

The survey indicated that Millennials aged 30 to 44 were the largest group of crypto users, followed by Generation Z adults aged 18 to 29. Men were three times more likely to use cryptocurrency than women. Black and Hispanic adults were the most common users of cryptocurrency for transactions.

Asian adults were the most significant group using cryptocurrency as an investment, while White adults were the least likely to use it for any purpose. Conducted in October 2023, the survey included 11,488 U.S. adults aged 18 and over. The results were weighted to represent 258 million adults based on updated population data from the U.S. Census Bureau.

Conclusion

In summary, the Federal Reserve’s survey reveals a noticeable decline in the number of Americans using or owning cryptocurrency, with variations across demographics and income levels. The findings provide a detailed look at the shifting landscape of cryptocurrency usage in the U.S.