The recent report by Coinbase sheds light on the worrisome trend of declining crypto talent in the United States. The largest US exchange pointed out the urgent need for regulatory clarity in the crypto industry to retain talent within the country. According to the report, there has been a significant decrease in the number of US-based crypto developers, dropping by 14 points over the past five years to only 26% today.
Obstacles to Crypto Adoption
Top Fortune 500 executives have also expressed concerns about the shortage of trusted talent in the crypto space. They view this shortage as a greater obstacle to widespread crypto adoption than regulatory challenges. On the other hand, smaller businesses are actively seeking out crypto-savvy candidates to fill key roles in their IT, tech, finance, and legal departments. A staggering 68% of small companies believe that blockchain and cryptocurrency can help address major financial pain points such as processing time and transaction fees.
Coinbase emphasizes the importance of establishing clear rules and regulations surrounding crypto to retain developers in the US. Despite the decline in crypto talent, there has been a noticeable increase in on-chain projects in the country. For instance, Web3 initiatives by Fortune 100 companies have seen a 39% growth. Furthermore, 56% of Fortune 500 executives mentioned that their organizations are actively working on on-chain projects like consumer-facing payment applications.
Senator Cynthia Lummis has voiced her concerns about the strict stance taken by the Biden administration and SEC Chair Gary Gensler on Bitcoin and digital assets. She warns that this approach could potentially drive the industry overseas, impacting America’s leadership in financial innovation. Lummis advocates for a more supportive environment to foster the industry’s growth domestically.
Efforts by Payment Companies
The Coinbase report also commended the efforts of payment companies like PayPal and Stripe in making crypto more accessible, particularly stablecoins. Merchants using Stripe can now accept USDC payments that automatically convert to fiat. PayPal supports transaction-free cross-border transfers in 160 countries, a stark comparison to the average charges of 4.45% to 6.39% in the international remittance market. Additionally, 48% of Fortune 500 executives see the potential of crypto in increasing access to financial systems, particularly banking for the underbanked and unbanked populations.
Leadership in the Crypto Space
The key takeaway from the report is the crucial need for the United States to take leadership in the crypto space. Clear rules and regulations, along with a supportive environment for talent retention, are vital for the country to fulfill crypto’s promise of better access and maintain its leadership role in financial innovation globally. It is imperative for policymakers and industry leaders to work together to address these challenges and ensure the long-term growth and success of the crypto industry in the US.
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