Underbanked Americans Turning to Crypto More Than Fully Banked Households – FDIC

A recent FDIC survey revealed that underbanked households in the United States used cryptocurrency more frequently in 2023 than fully banked households, with 6.2% of underbanked households engaging with crypto compared to 4.8% of those with full banking access.

The survey, released on November 12, examined responses from around 60,000 households and highlighted trends in crypto usage across various demographics. The “underbanked”—households that have a bank account but also rely on nonbank services like payday loans or check cashing—make up about 14.2% of U.S. households, or roughly 19 million households.

Among them, cryptocurrency usage was notably higher among younger, highly educated, and working-age households, as well as Asian and white households.

Income disparities were also significant, with 7.3% of households earning $75,000 or more using crypto, compared to only 1.1% of those earning less than $15,000. Overall, the vast majority of households using crypto held it as an investment, while only 4.4% used it for online purchases.

The FDIC report found that just 1.2% of unbanked households—those with no checking or savings accounts—used cryptocurrency, with most unbanked households relying on cash or prepaid cards and online payment apps like PayPal or Venmo. FDIC Chairman Martin Gruenberg noted ongoing disparities in banking access among minority, lower-income, disabled, and single-parent households, emphasizing the need for targeted solutions to bridge these gaps.

FDIC survey visual of how Americans use crypto per income level

The survey highlights differences in how crypto is perceived and used among various household groups. While most users hold cryptocurrency primarily as an investment, younger and higher-income households are more likely to experiment with it for both investment and transactions. Lower-income groups, by contrast, often face barriers such as limited financial literacy and resources, which impact their ability to engage with digital assets.

With rising crypto adoption among underbanked groups, regulators like the FDIC are placing greater attention on consumer protection and financial literacy. The findings point to a growing need for policies that address these shifts in financial access, especially as more Americans seek alternatives to traditional banking services.

Vanessa has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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