Cryptocurrency is often promoted as a tool for financial inclusion, particularly for individuals who are unbanked or financially vulnerable. This paper evaluates that assumption using nationally representative survey data from over 47,000 U.S. adults across multiple years. We estimate random-effects logistic regression models to examine four types of cryptocurrency use: investment, payments, transfers, and any use. We test how usage varies by banking status, financial vulnerability, financial literacy, and key demographic and socioeconomic factors.

Contrary to popular narratives, we find that unbanked individuals are significantly less likely to use cryptocurrency, even after controlling for income, education, and financial literacy. Financially vulnerable respondents are also less likely to engage with crypto across most use types. Instead, cryptocurrency use is most common among younger, male, employed, college-educated individuals, especially Black Americans. While financial literacy and income interact in some contexts, their effects are inconsistent. The dominant predictors of cryptocurrency use remain age, gender, race, and education. Overall, our results suggest that cryptocurrency adoption in the U.S. is not being driven by economic exclusion but rather by more financially and digitally integrated populations, challenging claims that crypto is currently serving as an alternative for the underserved.

Accepted Poster Presentation