Crypto exchange Coinbase revealed in its most recent State report that several of the largest U.S. companies have been preparing to move to on-chain platforms. Coinbase points out that there is a severe shortage of talent to support this change.
The U.S. Is Falling Behind In The Growth Of Crypto
Coinbase Chief Legal Officer Paul Grewal, citing the State report, said the U.S. has lost over 14% of its stake in the last five years since 2018. As a result, it currently only makes up 26% of all crypto developers worldwide.
Grewal added, “While the U.S. risks losing its position as the global leader in technological innovation, corporate adoption of crypto and on-chain activity will continue to grow.” Grewal has, therefore, called on the U.S. government to act decisively by strengthening its position on advancing cryptocurrencies.
He declared, “We must choose to do better, but the U.S. government must want to.” Global leadership in technological innovation is ours to lose.
A Review of the Situation with Cryptocurrencies
According to Coinbase’s State of Crypto report, Fortune 100 firms launched a record number of crypto, blockchain, and Web3 initiatives in the first quarter of 2024. The main obstacle was the need for more qualified personnel and reliable talent.
Almost half of Fortune 100 company executives stated that a lack of qualified personnel was the biggest barrier to on-chain technology adoption. The worst news is coming: the percentage of U.S. currency developers is dropping. Currently, just 14% of cryptocurrency engineers are from the U.S., a 14% decrease over the previous five years.
Still, there is much interest in blockchain technology. Remarkably, seventy per cent of Fortune 500 executives strongly desired to understand stablecoin applications. Stablecoins’ faster processing times and lower fees are the cause.
In a similar vein, digital assets are attracting more small enterprises because they can alleviate financial difficulties by offering quicker and less expensive payment options.
Lawmakers have backed the Coinbase study, which asserts that the U.S. must reverse its current trajectory sooner rather than later. Senator Cynthia Lummis of Wyoming wrote:
“The Biden admin and Gary Gensler’s unrelenting persecution of Bitcoin and digital assets is pushing the industry overseas and causing America to fall behind. We are the global leader in financial innovation. Let’s act like it and provide the industry a home”.
