The recent report by Coinbase has raised concerns over the diminishing crypto talent in the United States, despite the growing interest from corporate entities. The report indicates a significant drop of 14 points in the number of US-based crypto developers over the past five years, leaving only 26% of such talent in the country. This decline poses a serious challenge as top Fortune 500 executives are worried about a shortage of trusted talent, which they consider a bigger hurdle to crypto adoption than regulatory issues.
While larger corporations are struggling with the talent scarcity, smaller businesses are actively seeking out crypto-savvy individuals to fill upcoming roles in various departments such as IT, tech, finance, and legal. A survey revealed that around 68% of small companies believe that blockchain and cryptocurrency can effectively address major financial pain points like processing time and high transaction fees. As a result, there is a growing need for regulatory clarity in the crypto space to retain developers within the US.
Despite the decline in crypto developers, the US is experiencing a notable increase in on-chain projects. For example, the number of Web3 initiatives by Fortune 100 companies has surged by 39%. Additionally, more than half of Fortune 500 executives disclosed that their companies are actively working on on-chain projects, particularly focusing on consumer-facing payment applications. The approval of a spot Bitcoin ETF earlier this year has further fueled this growth, with assets under management surpassing $63 billion.
Coinbase emphasizes the urgent need for clear and precise regulations in the crypto sector. The report underscores the importance of establishing rules that not only retain crypto developers and talent within the US but also uphold the promise of improved access and enable the country to lead globally in the crypto arena. The lack of regulatory certainty could potentially hinder the growth and innovation in the industry.
Senator Cynthia Lummis has expressed apprehensions regarding the stringent approach of the Biden administration and Gary Gensler towards Bitcoin and digital assets. She fears that such regulations may drive the industry overseas, threatening America’s dominance in financial innovation. Lummis advocates for a more welcoming environment that fosters the growth of the crypto sector domestically, promoting innovation and investment within the country.
The Coinbase report also acknowledges the efforts of payment giants like PayPal and Stripe in making cryptocurrencies, especially stablecoins, more accessible to the masses. Merchants using Stripe can now accept USDC payments, which automatically convert to fiat currency. PayPal offers transaction-free cross-border transfers across 160 countries, significantly reducing the average charges of 4.45% to 6.39% seen in the international remittance market. Moreover, 48% of Fortune 500 executives believe that cryptocurrencies can enhance financial inclusion by providing banking services to the underbanked and unbanked.
Overall, the declining crypto talent pool in the US calls for immediate action to create a conducive regulatory environment that fosters innovation, retains talent, and positions the country as a leader in the global crypto landscape. Collaboration between industry players, policymakers, and regulators is essential to address these challenges and unlock the full potential of cryptocurrencies in the US economy.
