Crypto Talent Crunch Hinders Fortune 500 Adoption Plans: Coinbase
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As major US corporations embrace blockchain, calls for clear regulations are growing louder, a Coinbase survey conducted on Fortune 500 (F500) executives revealed.
But in the “State of Crypto” report published Wednesday, Coinbase said F500 execs are more worried about securing reliable crypto talent than navigating regulations. Additionally, a lack of understanding and clear steps to implement blockchain technology hinder broader adoption.
The survey showed the US is losing ground in the crypto talent race. This is despite 56% of Fortune 500 companies working on blockchain projects, including consumer-friendly payment applications. The report revealed a concerning 14% drop in US-based crypto developers over the past five years, with only 26% remaining domestically as of May.
Even so, Coinbase highlighted a growing demand for crypto-savvy talent. Even small businesses are seeking candidates with crypto knowledge for finance, legal, and tech positions.
The exchange emphasized that clear regulations are crucial for retaining US developers and maintaining the country’s leadership in tech innovation.
America's largest companies have big plans onchain.
The number of cryptocurrency, blockchain or web3 initiatives announced by F100 companies hit a record high in Q1 2024.
Find out more in our latest State of Crypto report: https://t.co/55px3vnGQQ pic.twitter.com/Nmbl4XSWyw
— Coinbase 🛡️ (@coinbase) June 12, 2024
Fortune 500 Execs Embrace Tokenization: 86% See Potential, 35% Actively Planning Projects
It also showed that a strong appetite for US collaboration is emerging among Fortune 500 leaders. The report pointed to a surge in interest in partnering with US companies for crypto initiatives (79%, up from 73% last year). Further, 72% of these executives believe a US-backed digital currency (compared to the Yen) is critical for maintaining the US’ global economic competitiveness.
Also, it appears F500 executives plan to put their money where their mouth is. They have allocated a significant average budget of $9.5m for blockchain projects in 2024. And most F500 companies plan to maintain or increase their crypto and blockchain budgets over the next two years.
A strong focus on cost savings and efficiency is driving interest in blockchain. Coinbase’s report revealed that 70% of F500 executives are keen to explore stablecoins, particularly for their potential to enable faster and cheaper payments. Further, 86% recognize the potential benefits of tokenization, a tech for representing assets on a blockchain, and 35% are already planning tokenization projects within their companies.
Uncertain US Regulations Drive Crypto Exodus
Faced with US regulatory uncertainty, crypto companies have migrated their headquarters abroad in recent years. This allows them to focus on development without the regulatory burden. However, these companies still value the US talent pool and prefer to hire American workers. But Coinbase’s report suggests a growing tension.
Developers appear increasingly drawn to countries like Singapore, Hong Kong, and Dubai, which offer clearer and more friendly regulatory environments. This trend highlights the lack of a unified approach in the US, where different agencies have varying policies, creating confusion for businesses. This exodus weakens the US’ position in the global crypto landscape.
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