-
Communities can now build wealth and move toward financial freedom by investing in Bitcoin, said a former chief auditor at the Fed.
-
She noted that crypto enables people in Black and Latino communities to access wealth that is otherwise unavailable through the traditional financial system.
Bitcoin has been identified as a tool for creating generational wealth and expanding financial freedom for many, according to Charlene Fadirepo, a former leader at the Federal Reserve Board of Governors.
Fadirepo is also the founder of the fintech platform Guidefi, which focuses on providing women and other professionals in underserved communities with access to financial and investment guidance.
In an interview with Yahoo Finance this week, Fadirepo called the flagship cryptocurrency “absolutely a tool for social justice.”
The former Federal Reserve auditor argues that Bitcoin has opened access to financial tools for Black Americans and Latinos that have largely been inaccessible through legacy banking systems.
A recent MarketWatch report highlighted a widening racial credit access gap in the United States. According to the report, people of color—specifically Black applicants—are denied mortgages 84% more often than white applicants.
“[Bitcoin] lets communities build wealth in neighborhoods that have been excluded by discriminatory banking systems,” she told Yahoo Finance.
Fadirepo also said Bitcoin is positioned for further growth as more institutional capital flows into the crypto industry. She expects to see increasing recognition of Bitcoin as an asset class from 2022 onward.
As adoption accelerates and more institutions and high-net-worth individuals add BTC to their balance sheets, Bitcoin’s broader outlook, she believes, will become even more favorable.
She discussed Bitcoin’s performance over the past two years and compared it to gold. Over a 10-year period, the leading cryptocurrency has produced an annualized return of about 200%, including a roughly 400% surge during 2020–2021.
By comparison, gold returned about 15% during the pandemic period, while the S&P 500 delivered roughly 42%.
Individuals can invest in Bitcoin by buying the cryptocurrency and holding it for potential future gains, trading it on broker platforms and exchanges, or participating in Bitcoin mining for those who seek operational exposure.
Fadirepo also addressed crypto regulation, noting that clearer regulatory frameworks would help build trust, strengthen consumer protections, and ultimately attract more retail and institutional investors.
Beyond Bitcoin, other sectors of the crypto ecosystem offer paths to economic opportunity, including decentralized finance (DeFi) and non-fungible tokens (NFTs). In 2021, NFT sales exceeded $44 billion, according to a Chainalysis report.