The Federal Reserve (Fed) released its annual report examining the financial lives of U.S. residents. The report reports that Americans are more likely to use cryptocurrency as an investment tool rather than a means of payment.
According to the report, in 2021, 12% of U.S. adults surveyed invested in cryptocurrency.
Only 2% of respondents use digital assets for purchases and 1% for sending money to friends or family.
The Fed also noted that low-income respondents are more likely to use cryptocurrency for transactions.
13% among those who used digital assets as a means of payment did not have traditional bank accounts, and 27% did not have a credit card.
Notably, those who held cryptocurrency for investment purposes had a “disproportionately high income.”
99% of them had a bank account, and 46% had an income above $100,000.