The Fed claims that Americans are shunning cryptos, calling Coinbase figures into question. In January, the crypto exchange claimed that 52 million Americans owned cryptoassets. Who to believe, between the Fed's reserve and the unbridled enthusiasm of Coinbase?
Cryptocurrencies, a passing idyll for Americans?
Is crypto-mania losing steam among our friends across the Atlantic fearing a remake of the FTX scenario? In any case, this is what the latest Fed survey on the economy and household decision-making, published on May 21. A vitriolic investigation which reveals that only 7% of American adults have used cryptocurrencies in the 12 months to October last year. A figure in free fall compared to 12% of 2021 and 10% of 2022.
In this changing landscape, crypto adventurers are rare: only 1% of adults still dare to use cryptos for payments or money transfers. A percentage reduced by half compared to the previous year. Among these daring people, almost 30% do it because their interlocutor prefers this methodwhile the lack of confidence in banks is the least cited reason.
The rich, however, seem to appreciate this digital currency: those earning over $100,000 per year are the most inclined to invest in bitcoin (BTC) and others. THE Millennials (30-44 years old) are at the head of the queue, followed closely by Generation Z (18-29 years old). To note that men are three times more likely to dive into the crypto universe than women.
THE ethnic disparities are also marked: the black and Hispanic adults favor financial transactions in crypto, while Asians prefer cryptocurrencies as an investment. White adults, for their part, seem the least interested in this new digital economy.
This survey, conducted in October 2023 among 11,488 adultsand weighted to represent the 258 million American adults, paints a nuanced portrait of the craze for cryptocurrencies.
Fed and Coinbase figures: A big crypto gap
The Fed's numbers are far from resembling those of Coinbase in its study on cryptocurrencies in 2023. Indeed, Coinbase painted a much rosier picture: nearly one in five Americans own cryptoor 52 million people.
Coinbase, in its overflowing enthusiasm, claims that 87% of Americans want financial system reform, finding it unfair and biased in favor of the powerful. Echoing this, 63% of cryptocurrency owners think that blockchain technology can democratize the economy.
But the Fed, for its part, points out that only 1% use cryptocurrencies for transactions, mainly because their recipients prefer them.
According to Coinbase, younger generations are the most avid crypto enthusiasts: 72% of 18-34 year olds believe that digital assets represent the future of finance.
Coinbase advocates clear legislation to regulate cryptoemphasizing that 87% of Fortune 500 executives say clear rules are essential to maintain American leadership. On the other hand, the Fed remains discreet on the subject, content to note a drop in the use of cryptos.
Thus, the two studies offer contrasting visions of the crypto universe: optimistic and reformist at Coinbase, cautious and realistic at the Fed.
It remains to be seen which of the two will ultimately convince legislators, currently very focused on the FET21 law, and citizens.
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