Looking at the current state of the cryptocurrency market, Dr. Tonya Evans can’t help but recall that banks received the then fledgling assets in 2014.
“If I think back to 2013 or 2014, the second breed of big cryptos came along, and banks really pushed back on discussions about cryptocurrency regulation back then,” said Evans, law professor and founder and CEO of Advantage Evans.
“Big banks feared [cryptocurrency] would become more legitimate. Back then, banks didn’t have a customer service issue, but now they do, and they realized that if they didn’t switch, they would start losing customers,” Evans pointed out.
She noted that banks, notably Deutsche Bank and Bank of America, have started paying extra attention to the cryptocurrency market.
“With Bitcoin and Ethereum at the forefront, the cryptocurrency market is booming and growing,” Evans said.
She called cryptocurrency a “fast-paced, fast-moving, emerging asset class.”
According to Terri Bradford, who researched black crypto ownership for the Federal Reserve Bank of Kansas City, the cryptocurrency has gained popularity among African-American consumers because of its historical context and the forward-looking views of young customers.
“Surveys show that black consumers are more likely to own cryptocurrencies than white consumers,” said Bradford, who authored the research article “The Cryptic Nature of Black Consumer Cryptocurrency Ownership.”
Bradford pointed to a 2021 Pew Research Center survey that found 18 percent of black adults had invested in, traded in, or used a cryptocurrency, compared to 13 percent of white adults.
“This disparity between black and white consumer ownership of cryptocurrencies stands in sharp contrast to other traditional assets,” Bradford claimed.
According to the Board of Governors of the Federal Reserve System’s 2019 Survey of Consumer Finances, 61 percent of white households owned stock investments compared to 34 percent of black households — a margin of almost two to one.
“Unlike white consumers, black consumers are actually more likely to own cryptocurrencies than assets like stocks and mutual funds,” Bradford wrote.
“Using the same technology is blockchain,” Bradford explained.
“Crypto is a digital currency offered on blockchain, while NFTs and others are different ways of using this currency.”
She continued, “Younger are using crypto as we see in research that 50 percent of black consumers of crypto are millennials and younger and considering that constituent is digital native where they spend a lot of time then we see why it’s having a major impact on cryptocurrency adoption.
Click here to read more from Dr. Evans and Bradford on Black America and cryptocurrency on the National Newspaper Publishers Association morning news show Let It Be Known.