Fed report: ‘12% of American adults use cryptocurrency in 2021’
The United States Federal Reserve (Fed) has released its annual report that reflects the financial life of the United States and indicates that people are using cryptocurrencies as an investment tool rather than a payment mechanism maths. Only 12% of American adults will use crypto in 2021, and most are high earners.
The Federal Reserve Board of the United States has added cryptocurrency statistics in its new Economic Well-Being of U.S. Households in 2021 report. The Fed’s ninth annual research examined survey responses from 11,000 persons polled in October and November 2021.
The report shows many positive results, with 78% of U.S. adults “doing okay or living comfortably,” a figure that has increased by 3% over the past 3 years. As a diagnostic of financial fitness, the report cites 68% of Americans as being able to cover emergency expenses of about $400 with cash alone or equivalent.
For the first time, the report examined cryptocurrency usage. It discovered that in 2020, 12% of U.S. people possessed or used cryptocurrency, with 11% storing it as an investment, 2% using it for a purchase or payment, and 1% sending it to friends or family.
Crypto investors “were disproportionately high-income, almost always had a traditional banking relationship, and typically had other retirement savings,” according to the research. Forty-six percent earned $100,000 or more per year, while 89% of those who were not retired had retirement funds. Twenty-nine percent earned less than $50,000.
The research was conducted before the Omicron variant took hold in 2021. The Fed recognized that this and other changes to the economic landscape could affect the research results if it conducted the survey close afterwards.
This is the first time the U.S. regulator has asked a question about cryptocurrencies to the 11,000-person survey panel, and it is also the year that reflects the highest self-reported financial well-being ever. Every year the Fed has conducted a survey to assess the financial state of Americans since 2013.
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