American Households and Cryptocurrency Usage
(Reuters) – A report from the U.S. Federal Deposit Insurance Corporation (FDIC) highlights that households relying on services like check cashing and payday loans to make ends meet are more likely to hold cryptocurrencies, despite the associated risks. This contrasts with those having better access to traditional banking services.
The report also reveals that one in eight shoppers using buy-now-pay-later (BNPL) services has made a late payment or missed one on at least one purchase.
These findings emerged from a recent survey focusing on 'underbanked' and 'unbanked' households—those with limited or no access to traditional banking. The FDIC surveyed 30,000 households in June 2023 as part of ongoing examinations initiated after the 2007 global financial crisis.
Notably, the share of households identified as 'unbanked' has decreased significantly since 2011, now standing at 4.2%, equating to about 5.6 million households. However, pronounced disparities remain, particularly among poorer Black, Hispanic, Native American, Alaska Native, and single-parent households, as well as households with disabled working-age members, who are considerably more likely to be unbanked.
Furthermore, these groups are more likely to be 'underbanked,' meaning they possess bank accounts but rely on alternative financial services like pawn shops, title lenders, and check cashing. Approximately 14.2% of U.S. households, or about 19 million, are classified as underbanked, with over 6% of these households holding digital currencies, compared to 4.8% of fully banked households.
Additionally, nearly one in ten underbanked households utilize BNPL services, while only 3% of fully banked households do. Among BNPL users, nearly 13% reported late payments, which increase to over 20% within the underbanked category.
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