Markets
US crypto developers lose market dominance despite corporate demand
In its latest State of Crypto report, cryptocurrency exchange Coinbase reported that some of the largest American companies are planning a move to onchain platforms. However, there is a serious lack of a talent pool that can meet this shift, Coinbase notes.
US losing ground in crypto development
Quoting the State of Crypto report, Coinbase Chief Legal Officer Paul Grewal
stated that the US has lost almost 14% of its share in the last five years since 2018. Thus, it now only represents 26% of the total global share of crypto developers.
Grewal further stated that corporate adoption of cryptocurrencies and on-chain activities would continue to grow, while the US risks losing its position as a global leader in technological innovation. Thus, Grewal urged the US government to take decisive action, improving its position in the development of cryptography.
“Global leadership in technological innovation may be lost, but the US government must want – and choose – to do better,” he said.
A Look at the State of Crypto Report
In your encryption state report, Coinbase mentioned that during the first quarter of 2024, Fortune 100 companies announced a record number of crypto, blockchain, and Web3 initiatives. However, the main barrier was the lack of reliable talent and the right skills.
Nearly 50% of executives at Fortune 100 companies said a lack of qualified talent was the main obstacle to adopting onchain technology. Furthermore, the declining participation of crypto developers in the US is further adding to the problems. Right now, just one in four crypto developers is from the US, down 14% over the past five years.
However, despite this, interest in blockchain technology remains high. A whopping 70% of Fortune 500 executives have shown a deep interest in learning about stablecoin use cases. The reason is the instant processing times and lower fees offered by stablecoins.
Likewise, small businesses are increasingly attracted to digital assets due to their ability to solve financial problems by providing faster and cheaper payment solutions.
Lawmakers came to support the Coinbase Report stating that the US needs to make a course correction sooner. Wyoming Senator Cynthia Lummis wrote:
“Administrator Biden and Gary Gensler’s relentless pursuit of Bitcoin and digital assets is pushing the industry offshore and leaving America behind. We are global leaders in financial innovation. Let’s act like it and give the industry a home.”