The report shows a 14-point decline in developer share over 5 years, though top companies are increasingly adopting on-chain solutions.
In a report released earlier this week, Coinbase expressed concerns over the declining crypto talent in the US amidst the ongoing increase in general corporate interest.
The largest US exchange highlighted the need for regulatory clarity around the crypto realm to keep the talent within the country.
Declining Developer Talent in the US
Coinbase notes a significant decline in US-based crypto developers, down by 14 points over the past five years to just 26% today. Top Fortune 500 executives have voiced concerns about a trusted talent shortage, seeing it as a greater obstacle to crypto adoption than regulatory issues.
On the other hand, smaller businesses have expressed interest in looking for crypto-savvy candidates to fill future roles in IT, tech, finance, and legal departments. About 68% of small companies believe blockchain and cryptocurrency can address major financial pain points: processing time and transaction fees.
As such, Coinbase asserts the need for clarity of rules and regulations around crypto to keep developers in the US.
Despite an apparent decline in crypto developers, the US is seeing a significant increase in on-chain projects. For instance, the number of Web3 initiatives by Fortune 100 companies has increased by 39%. Moreover, about 56% of executives of Fortune 500 companies mentioned that their entities are working on on-chain projects like consumer-facing payment applications.
The report highlights that following the approval of a spot Bitcoin ETF earlier this year, assets under management for spot Bitcoin ETFs have surpassed $63 billion due to the entry of more trusted names in the crypto and blockchain industries.
Coinbase highlighted the vital need for clear-cut rules in crypto. The report noted that:
“The increased activity underscores the urgency for clear rules for crypto that help keep crypto developers and other talent in the US, fulfill crypto’s promise of better access, and enable US leadership on crypto globally.”
Senator Cynthia Lummis voiced concern regarding the strict stance of the Biden administration and Gary Gensler on Bitcoin and digital assets. She cautioned that this approach might lead the industry to move overseas, potentially impacting America’s leadership in financial innovation. Lummis called for a more accommodating environment to foster the industry’s growth domestically.
Other Key Highlights of The Reports
The Coinbase report also lauded the efforts by various payment companies, including PayPal and Stripe, to make crypto and, specifically, stablecoins more available.
Merchants using Stripe can now accept USDC payments, which autonomously convert to fiat.
PayPal also supports transaction-free cross-border transfers across 160 countries, compared to the global standard of 4.45% to 6.39% in average charges in the international remittance market.
Additionally, 48% of F500 executives believe crypto can potentially increase access to financial systems, hence banking for the underbanked and unbanked. However, all this can be achieved if the US takes leadership in the crypto space.