*
Corresponding author: Bismark Kofi Owusu Sarfo, Daniel Duah
Copyright © 2025 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0.
Bridging the Digital Finance Gap in the United States: Analyzing the Socioeconomic
and Behavioral Determinants of Cryptocurrency Adoption
Daniel Duah
1
, Bismark Kofi Owusu Sarfo
1, *
, William Vortia
2
, Prosper Appiah-Bediako
3
and Richard Owusu
2
1
Department of Financial Technology, Worcester Polytechnic Institute, 01609, MA, USA.
2
Department of Education, Westcliff University, CA, 92614, USA.
3
Department of Strategic Leadership, Westcliff University, CA, 92614, USA.
Magna Scientia Advanced Research and Reviews, 2025, 15(01), 001–013
Publication history: Received on 08 July 2025; revised on 15 August; accepted on 18 August 2025
Article DOI: https://doi.org/10.30574/msarr.2025.15.1.0098
Abstract
This study examines the socioeconomic, behavioural, and demographic factors influencing cryptocurrency adoption in
the United States, utilising nationally representative data from the 2023 Survey of Household Economics and Decision
Making. Using binary logistic regression, the analysis examines the impact of financial access, perceived well-being,
income, education, employment, and demographic variables on the adoption of cryptocurrency. Results reveal that
individuals lacking access to $400 in emergency funds are significantly more likely to adopt cryptocurrency, indicating
its role as an alternative financial tool for underserved populations. Conversely, lower-income groups are less likely to
adopt, suggesting that structural barriers, such as limited digital access and inadequate financial literacy, hinder
adoption despite financial need. A U-shaped relationship is observed between education and adoption, where moderate
levels (e.g., bachelor’s degrees) are associated with higher adoption rates. Full-time and part-time employment, younger
age, and male gender also increase the likelihood of adoption. Additionally, White, non-Hispanic individuals are less
likely to adopt compared to other racial and ethnic groups, pointing to possible differences in perceived institutional
trust. These findings suggest that cryptocurrency adoption reflects not only financial stress but also the ability to act,
which is influenced by access, exposure, and behavioural factors. The study underscores the importance of inclusive
fintech design and policy measures that address both infrastructural and psychological barriers to digital financial
inclusion.
Keywords: Cryptocurrency; Digital Finance; Socioeconomic; Behavioural determinants
1. Introduction
Few financial innovations have captured global attention as swiftly and disruptively as cryptocurrency. This is
conceived as a decentralised alternative to fiat currencies, backed by blockchain technology and cryptographic
protocols, to facilitate peer-to-peer digital transactions without the need for intermediary institutions. The introduction
of cryptocurrency is attributed mainly to the creation of Bitcoin in 2008 by the anonymous person known as "Satoshi
Nakamoto" (Laura, 2020). These digital assets have evolved from being fringe instruments to mainstream financial
assets. They are now utilised for investment, remittances, e-commerce, and increasingly as tools for economic
participation by individuals outside the traditional banking system. As cryptocurrency matures, its adoption is no longer
restricted to technophiles or investors; it is becoming an essential element for many who face financial exclusion or
seek faster, cheaper, and more autonomous financial solutions.
The cryptocurrency ecosystem has expanded dramatically in recent years. By 2023, more than 22,932 cryptocurrencies
were in circulation, with a combined global market capitalization of $1.1 trillion (Forbes, 2023). Digital currencies from