In its latest State of Crypto report, Coinbase has highlighted a significant shift in the global crypto landscape, noting that American crypto developers are losing market dominance despite increasing corporate demand for on-chain platforms. According to Coinbase, some of the largest American companies are planning to transition to blockchain technology, but there is a notable shortage of skilled developers to support this shift.
US Share in Crypto Development Drops
Paul Grewal, Coinbase’s Chief Legal Officer, revealed that the US has seen a 14% decline in its share of global crypto developers over the past five years, now making up only 26% of the global total. Grewal emphasized that while corporate adoption of blockchain technology is on the rise, the US risks losing its status as a global leader in technological innovation. He called for decisive action from the US government to improve its stance on crypto development, stating, “Global leadership in technological innovation is ours to lose, but the U.S. government has to want – and choose – to do better.”
Key Findings from the State of Crypto Report
The report noted a record number of crypto, blockchain, and Web3 initiatives announced by Fortune 100 companies in the first quarter of 2024. However, the primary obstacle to adopting chain technology is the lack of skilled talent. Nearly 50% of executives in Fortune 100 companies cited this shortage as the main barrier.
Despite the decline in US crypto developers, interest in blockchain technology remains high. About 70% of Fortune 500 executives expressed strong interest in stablecoin use cases due to their instant processing times and lower fees. Additionally, small businesses are increasingly attracted to digital assets for their ability to provide faster and cheaper payment solutions.
Calls for Regulatory Support
Lawmakers have echoed Coinbase’s concerns, urging for a policy shift. Wyoming Senator Cynthia Lummis criticized the Biden administration and SEC Chair Gary Gensler’s stringent stance on Bitcoin and digital assets, arguing it is driving the industry overseas and causing America to lag in financial innovation. She stated, “We are the global leader in financial innovation. Let’s act like it and provide the industry a home.”
The Coinbase report underscores the urgent need for the US to bolster its crypto development sector to maintain its competitive edge in the rapidly evolving blockchain landscape.
