FRB KC: Distrust, Wealth Gap Behind Black Consumer Crypto Appeal
A new article from the Federal Reserve Bank of Kansas City reviews multiple factors that contribute to cryptocurrency’s appeal to Black consumers, an issue initially highlighted by Karen Petrou in an op-ed in September of 2021. Key factors include the racial wealth gap, the “generational” distrust of financial institutions, crypto’s accessibility and perceived stability compared to traditional financial institutions, and increasing comfort with digital technology. The article’s conclusions are grounded in an array of survey data reiterating significant statistical disparities in equity ownership and median household wealth between white and black households, correlating these with higher proportional crypto ownership of Black compared to white adults.