According to the FED report, income influences how consumers use crypto

According to the FED report, income influences how consumers use crypto

While cryptocurrencies are “used far more often” as an investment instrument as a means of payment, the opinion of the owners of digital assets depends on their income level, according to the Federal Reserve in a recently published report.

twelve percent of adults in the USA stated that they have digital assets, and 3 % stated that they use crypto for purchases or money transfers, according to the Economic Well of Us House Holds (Shed) of the FED. test report .

In 2021, almost 60 % of adults who used cryptocurrencies for transactions had an annual income of $ 50,000 or less, according to the Fed in the report, while 24 % of transaction users specified an annual income of USD $ 100,000 or less.

These users also have a disproportionately no bank details, said the Fed. Adults with lower incomes are more likely to have a traditional banking relationship, but transactional crypto users have no bank account twice as often as the same age in the same income class.

Among the respondents indicate 27 % of the people who use crypto transactionally that they do not have a credit card, the Fed found, compared to 17 % of non-crypto users.

The report could help promote cryptopolitics in Washington, some speculate because it shows a legitimate application for digital assets.

"[It’s] Great news in connection with the Financial Service Committee of the House of Representatives, who stood together at the end of last year and emphasized on a non-partisan basis that Krypto could help those without a bank account and democratize the banking system," said David Tawil, President of the Krypto Hedge Fund Firma Prochain Capital. named.

"The fact is that crypto cannot be ignored and the public serves well; especially the part of the public that is excluded from the traditional banking system."

On the other hand, those who only hold cryptocurrencies for investment purposes have a disproportionately high income, said the Fed. In addition to their crypto stands, these investors almost always have a traditional bank relationship and other pension initial instruments, according to the report.

In 2021, 46 % of those who only used cryptocurrencies for investments had an income of $ 100,000 or more, while 29 % had an income of less than $ 50,000.

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Income The contribution has an impact on how consumer use crypto, according to the Fed report, is not a financial advice.