In 2023, approximately 18 million Americans engaged with cryptocurrency in some form, marking a significant shift in the landscape of digital assets. According to a detailed report by the Federal Reserve System (FRS), only 7% of the U.S. population reported owning or using cryptocurrencies during the year. This statistic represents a noticeable decline from previous years, with cryptocurrency ownership peaking at 12% in 2021 and dropping to 10% in 2022.
The findings were derived from a comprehensive survey conducted by the FRS in October 2023, which sampled over 11,000 U.S. residents aged 18 and older. This survey, part of the Survey of Household Economics and Decisionmaking (SHED), aimed to gather insights on a range of financial issues including income, expenditures, employment, and investments.
The Federal Reserve's analysis suggests a cooling interest in cryptocurrencies as a mainstream financial tool among Americans. Of the 258 million U.S. adults reported by the Census in March 2023, only a small fraction now hold digital assets. The decline is even more pronounced in the use of cryptocurrencies for transactions, with only 1% of adults using digital currencies as a method of payment, a decrease from 2% in 2022.
The demographic breakdown reveals that Americans between the ages of 30 and 44 are the most active cryptocurrency users. Moreover, the data indicates a gender disparity in usage, with men being three times more likely than women to use digital assets. Despite this gender gap, the overall percentage of users has decreased across all demographics.
Analysts highlight that the majority of cryptocurrency holders in the U.S. treat their digital assets primarily as investments rather than as currency for transactions. This investment mindset persists even as the market experiences fluctuations in value and regulatory scrutiny.
Interestingly, the Federal Reserve's findings contrast sharply with claims from prominent cryptocurrency platforms such as Coinbase. Coinbase has reported that 52% of the adult population is seeking alternatives to traditional financial systems, and claims that around 425 million people worldwide are using cryptocurrencies. This discrepancy points to varying methodologies and perhaps optimism in the data reported by crypto exchanges.
This decline in cryptocurrency usage in the U.S. could be attributed to several factors, including market volatility, regulatory challenges, and a shifting public perception about the stability and utility of digital currencies. As the landscape continues to evolve, it will be essential to monitor these trends and their implications on the broader financial system and individual financial decisions.
Overall, the Federal Reserve's 2023 report provides a critical snapshot of the current state of cryptocurrency in the U.S., reflecting a cautious approach by American consumers towards digital assets amid ongoing economic uncertainties and regulatory developments.
