The news: Payee preference was the largest predictor of a consumer choosing to pay in cryptocurrency in 2024, per a report by the Federal Reserve Bank of Kansas City.

35.4% of crypto users paid with a digital currency because of payee preference. Speed, privacy, and cost followed at 20.8%, 19.6%, and 13.2%, respectively.

Why this matters: Consumer engagement with crypto has become increasingly passive. Payee’s preference, speed, and privacy were nearly tied as the main reasons for electing to pay with crypto in 2022. 

With payee preference now outstripping other reasons by almost 15 percentage points, US consumers largely appear to be using cryptocurrency for payment when asked by the recipient—instead of by choice. 

Crypto on the decline? The share of consumers who pay with cryptocurrency modestly declined across almost all consumer groups with the exception of one—those with poor or very poor credit scores, per the Fed. 

Use among Black Americans and US noncitizens dropped more than two percentage points. This suggests populations that have been historically unbanked or underbanked aren’t being served by cryptocurrency, despite crypto advocates’ position otherwise.

Our take: The GENIUS Act’s passage and the rising interest in stablecoins by incumbents and fintechs may reverse some of these trends as consumers gain regulatory clarity and more use cases.

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