U.S. Lags as Global Adoption of Blockchain and Crypto Initiatives Soars, Reveals Coinbase Report
Summary:
Coinbase's fourth annual report reveals an increasing number of Fortune 100 companies embarking on crypto initiatives, with a 39% rise observed year-on-year in Q1 2024. However, the U.S. lags in global ranking, indicating a need for increased efforts to leverage this trend. The shift towards tokenization of real-world assets and blockchain tech is conspicuous, spanning beyond corporates to small businesses across sectors. Despite challenges like the lack of skilled personnel, a strong desire for U.S. collaboration persists among global companies.
The adoption of blockchain projects by the world's most sizable corporations is on the rise, yet for the United States to seize the opportunities this presents, effort is needed. This was a key insight from Coinbase's fourth annual review of corporate adoption. In the first quarter of 2024, a record high was set as the tally of Fortune 100 companies engaged in crypto, blockchain or Web3 initiatives increased by 39% compared to the previous year. Many of these projects are in late stages of development, boasting an average budget of $9.5 million. Furthermore, 56% of Fortune 500 leaders have revealed their respective companies are implementing blockchain projects, as per Coinbase's findings.
Blockchain continues to allure various segments of the real-world economy. Tokenization of real-world assets has significantly spurred this adoption, as evidenced by the over $63 billion worth of Bitcoin managed in spot exchange-traded funds and tokenized U.S. Treasury bills which have witnessed a staggering 1,000% rise since the start of 2023, totaling $1.29 billion. It's also relevant that in 2023, 18 million Americans were involved in crypto usage or ownership.
According to Coinbase, small businesses have also shown a tremendous interest in blockchain technology, with 68% displaying a favorable disposition towards it. They are particularly interested in the technology for payments, though its application extends to sectors such as gaming, healthcare, and dining. As Coinbase notes, “By ensuring fair participation in the economy, crypto fosters economic freedom.”
The United States lags behind, however, with 136 Fortune 500 companies based there in 2023, compared to 142 in China. Japan managed third place with a total of 41. Since surpassing the United States in 2020, China has maintained and gradually extended its lead. According to Senator Cynthia Lummis, the primary obstacle to blockchain adoption by US Fortune 500 executives isn't the absence of regulation, but rather, the lack of skilled personnel. Small businesses noted a preference for prospective finance, legal, or tech staff with crypto knowledge. However, only one in four crypto developers are based in the US.
Still, an overwhelming eagerness exists to collaborate with the United States. Nearly four out of five (79%) large company leaders indicated their preference to work with a US partner, while 72% believed that a digital currency underpinned by the US dollar would maintain the global economic competitiveness of the US.
Published At
6/13/2024 12:22:38 AM
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