As a seasoned crypto investor with a keen interest in the industry’s development, I find Coinbase’s report both intriguing and concerning. The decline in US-based crypto developers is a red flag, and the need for regulatory clarity to keep talent within the country cannot be overstated.
In a recently published report, Coinbase voiced worries about the decreasing pool of crypto expertise in the US as corporate demand for digital currencies continues to surge.
The biggest American exchange emphasized the importance of establishing clear regulations regarding cryptocurrencies to prevent top talent from leaving the country.
Declining Developer Talent in the US
According to Coinbase’s latest report, there has been a substantial decrease of approximately 14 percentage points in the number of US-based crypto developers over the past five years, leaving only about one quarter (26%) of the total pool today. Top executives from Fortune 500 companies have expressed apprehensions regarding this talent scarcity, viewing it as a more pressing concern than regulatory hurdles in their journey towards adopting cryptocurrencies.
As a researcher studying the adoption of blockchain technology and cryptocurrencies in smaller businesses, I’ve come across an intriguing trend. Contrary to larger corporations, many small companies have shown a keen interest in recruiting individuals with expertise in crypto and blockchain for various roles within their IT, tech, finance, and legal teams. The rationale behind this is that these businesses believe blockchain and cryptocurrencies can help alleviate significant financial challenges they face – namely long processing times and high transaction fees. According to my findings, approximately 68% of small companies share this perspective.
I, as an analyst, would express it this way: Coinbase advocates for clear-cut guidelines on cryptocurrency regulations in the US to ensure the continued presence of American developers in this field.
In contrast to a perceived drop in crypto developers, the US is experiencing a notable surge in on-chain initiatives. For example, there has been a 39% rise in Web3 projects spearheaded by Fortune 100 companies. Furthermore, approximately 56% of Fortune 500 company executives have disclosed that their organizations are engaged in developing on-chain projects, such as consumer-focused payment platforms.
As a researcher studying the cryptocurrency market, I’ve discovered that since the approval of a spot Bitcoin Exchange-Traded Fund (ETF) earlier this year, the assets under management for these funds have reached an impressive milestone of over $63 billion. This significant growth can be attributed to the entry of reputable players in the crypto and blockchain industries, increasing investor confidence in these products.
Coinbase highlighted the vital need for clear-cut rules in crypto. The report noted that:
The heightened level of engagement emphasizes the necessity for well-defined regulations regarding crypto. These guidelines are crucial for retaining crypto innovators within the US, upholding the potential benefits of crypto for broader access, and establishing American dominance in the global crypto landscape.
Senator Cynthia Lummis expressed apprehension over the rigid position of the Biden administration and Gary Gensler towards Bitcoin and digital assets. She warned that such a stance could push the industry towards relocating abroad, which might adversely affect America’s dominance in financial innovation. Lummis advocated for a more receptive climate to nurture the industry’s expansion within the US borders.
Other Key Highlights of The Reports
The Coinbase report praised the initiatives taken by payment firms such as PayPal and Stripe for enhancing accessibility to cryptocurrencies, particularly stablecoins.
Merchants using Stripe can now accept USDC payments, which autonomously convert to fiat.
PayPal enables free cross-border transactions in over 160 countries, contrasting the typical fees of 4.45% to 6.39% for international money transfers in the market.
Nearly half of Fortune 500 executives hold the view that cryptocurrencies have the potential to expand financial opportunities, thereby benefiting the underbanked and unbanked populations. This goal can be realized if the United States assumes a pioneering role in the crypto industry.
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2024-06-17 00:52