A recent report by the Federal Deposit Insurance Corporation (FDIC) reveals a significant trend: cryptocurrency usage is more common in underbanked households than in fully banked ones. According to the FDIC’s Nov. 12 report, 6.2% of underbanked households used crypto in 2023, compared to just 4.8% of fully banked households. This disparity highlights how certain communities are turning to digital assets for financial inclusion.
The FDIC defines underbanked individuals as those with a bank account who still rely on nonbank financial services like payday loans or check cashing. In 2023, around 14.2% of U.S. households—equal to 19 million people—fit this description. These households often face barriers to traditional banking, which may explain their greater interest in using crypto for financial solutions.
Demographic Trends in Crypto Usage
The report also reveals important demographic patterns in cryptocurrency adoption. Data shows that younger, well-educated, Asian, and white households are the most likely to use crypto. Households with incomes over $75,000 reported a 7.3% usage rate, while only 1.1% of households earning below $15,000 used crypto. These findings show a clear relationship between income level and crypto adoption, with wealthier individuals more likely to invest in digital assets.
Most crypto users hold digital assets for investment purposes, with only 4.4% using them for purchases. Among unbanked households, only 1.2% reported using crypto, compared to 5% of banked households. This suggests that banked individuals may feel more confident using crypto for transactions, while unbanked households face more obstacles in integrating digital assets into everyday financial activities.
Unbanked Households Rely on Cash
In 2023, 4.2% of U.S. households were unbanked, meaning they had no checking or savings account at a bank. The FDIC found that two-thirds of unbanked households rely entirely on cash, while the remaining third use prepaid cards or online payment services like PayPal and Venmo. These households encounter substantial challenges in accessing traditional financial services, which contributes to their reliance on cash and alternative financial tools.
FDIC Chairman Martin Gruenberg commented on the findings, emphasizing the persistent gaps in banking access. “This survey highlights ongoing disparities in banking access for minority, low-income, disabled, and single-parent households that require attention,” he said. His statement underscores the ongoing struggle many households face in accessing basic banking services, a gap that cryptocurrency could potentially help fill.
Regulatory Landscape and Crypto’s Future
The FDIC report also touches on pressing regulatory issues around crypto. Coinbase, one of the largest U.S.-based cryptocurrency exchanges, recently revealed that the FDIC had advised banks against offering services to crypto-related businesses. This stance adds to the growing regulatory scrutiny surrounding digital assets, fueling debates over their role in the financial system.
As more people adopt cryptocurrencies as tools for financial empowerment and investment, regulators will need to carefully balance integration with oversight. Addressing concerns over security, fraud, and market stability will be crucial for cryptocurrency’s future in mainstream finance. As digital assets face these hurdles, their success will rely not only on user adoption but also on navigating the regulatory landscape and gaining acceptance within the global financial system.
I am Toby Rothschild, Co-Founder of Spearmint and author at Coinography, and a strategist focused on advancing Web3 innovation, digital ecosystems, and the future of decentralized technology. I combine product thinking, creative leadership, and deep interest in emerging trends to help shape how individuals and organizations interact with the next generation of digital systems.
My work centers on understanding how blockchain, AI, and digital identity are reshaping global industries. At Spearmint, I help lead the direction of initiatives that bring clarity, structure, and meaningful user experiences to complex technological environments. I focus on bridging vision with execution, ensuring that innovation remains practical, scalable, and aligned with long-term growth.
As an author at Coinography, I create insights that translate fast-moving Web3 developments into clear, useful narratives. I explore topics such as decentralized governance, digital identity, creator economies, token models, protocol design, and the shifting cultural patterns around emerging technology. My aim is to make digital transformation more understandable and approachable for a wider audience.
I believe that Web3 is not only a technological shift but a cultural and creative one. Strong ideas, thoughtful communication, and human-centered design will shape which technologies thrive and how communities evolve around them. My writing and research reflect this belief, focusing on clarity, relevance, and long-term perspective.
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