Tonya Evans recalled the then-fledgling cryptocurrency market’s reception in 2014 when looking at the current state of cryptocurrency.
During the time of the second big crypto boom around 2013 and 2014, banks were pushing back hard against regulating cryptocurrency, said Evans, a law professor and CEO of Advantage Evans.
“Cryptocurrency was feared by big banks as it gained legitimacy. When banks didn’t have a customer service problem back then, they realized they would lose customers if they didn’t change,” Evans maintained.
There has been an increase in interest in the cryptocurrency market from banks, particularly Deutsche Bank and Bank of America.
According to Evans, the cryptocurrency market is growing and booming due to Bitcoin and Ethereum’s leadership. Cryptocurrency is an “emerging asset class, fast-paced, and fast-moving.”
The historical context and the forward-looking outlook of young customers are contributing to the popularity of cryptocurrency among African American consumers, says Terri Bradford.
Studies show that Black consumers have a higher percentage of cryptocurrency ownership than white consumers, according to Bradford, who authored the article, “The Cryptic Nature of Black Consumer Cryptocurrency Ownership.”
Compared to white adults, 18 percent of Black adults had invested in, traded, or used a cryptocurrency according to a Pew Research Center survey from 2021.
It is striking how Black consumers’ ownership of cryptocurrency differs from their ownership of other traditional assets, according to Bradford.
White households owned 61 percent of equity investments, while Black households owned 34 percent – nearly a two-to-one margin, according to the Federal Reserve’s 2019 Survey of Consumer Finances.
The prevalence of cryptocurrencies among Black consumers is higher than that of assets such as stocks and mutual funds,” Bradford noted.
Bradford explained that blockchain leverages the same technology.
Blockchain is a platform that offers digital currencies, while NFTs and others are tools for leveraging those currencies.”
In addition, she explained: “Younger ones are leveraging crypto, as research shows that half of Black consumers of crypto are millennials and younger, and because this constituent is digital-native and spends a lot of time on the internet, it is not surprising that it is having a big impact on cryptocurrency adoption.”
Find out more about Black America and cryptocurrency on NNPPA’s Let It Be Known morning news program by clicking here.
Via this site
