The survey dubbed “Economic Well-Being of U.S. Households in 2021” and released on May 23, 2022, sought to measure the economic health of consumers after sampling feedback from 11,000 adults. Furthermore, the 2021 version of the survey included questions on digital currencies for the first time with the study highlighting the status of cryptocurrency ownership among Americans amid the sector’s growth in recent months. The Fed acknowledged that despite cryptocurrencies being relatively a new financial sector product, most people interacting with digital assets were mainly focused on the investment side.
Use of crypto in payments
Additionally, the survey indicated that cryptocurrencies are also finding their way in the payment space, with 2% of holders using different assets to make purchases. Interestingly, the Fed also highlighted the disparity in income levels among crypto investors. Adults who held digital assets solely for investments were disproportionately high-income earners. The results come when the Federal Reserve has increased its inroads into the cryptocurrency sector with different initiatives. In February, the bank announced its plans to explore a possible central bank-issued digital currency in a bid to improve the domestic payments system. Furthermore, the Fed has been involved in the regulation debate, with chairman Jerome Powell calling for more laws to govern assets like Bitcoin and stablecoins. Notably, the regulation debate has been ignited by the TerraUSD crash that saw millions of investors lose significant investments. Elsewhere, as reported by Finbold, former Federal Reserve Chairman Ben Bernanke stated that Bitcoin has no potential to become an alternative form of currency. His sentiment comes as several countries consider declaring the assets as a legal tender, following El Salvador’s footprints.
