The blockchain and cryptocurrency industries are rapidly evolving and are expected to change the face of money, finance, and the internet as we know it. The United States of America, a global leader in finance and technology, must act quickly to preserve its preeminence in these fields.
According to a recent report, the country is losing its lead in blockchain developers, with market share declining by 2% per year for the last five years.
The country now holds only 29% of the market share, down from 40% in 2017. This trend puts U.S. preeminence in finance and technology at risk.
The report, which analyzed the geographic distribution of over 23,343 open-source software engineers responsible for a market worth over $1 trillion, revealed that emerging markets like India and Ukraine are gaining market share. This trend threatens U.S. influence in shaping global financial and data standards.
Why America must act quickly
The U.S. must act quickly to maintain its leadership in the blockchain and cryptocurrency industries for several reasons:
Jobs and Financial Impact: A strong presence in blockchain software development creates jobs and drives financial inclusion, fueling the growth of the broader blockchain ecosystem.
Standards Influence: By designing new protocols, U.S. engineers can define the standards for financial and data systems, shaping the modern equivalents of SWIFT and HTTP. Losing market share means that other countries can exert more influence over global financial and data standards.
National Security: The U.S. must shape the development of new technology and financial products to reflect American values and national security objectives.
How the country can preserve its preeminence
To preserve its leadership in the rapidly evolving blockchain and cryptocurrency ecosystem, the U.S. can consider implementing the following measures:
-Education and Training: Investing in educational programs and initiatives that focus on blockchain and cryptocurrency development can help to create a highly skilled workforce and retain top talent within the country.
-Regulatory Clarity: Providing clear and supportive regulations for the cryptocurrency and blockchain industries will encourage more innovation and foster growth within the country. This will make it an attractive destination for both new and established developers.
-Public-Private Partnerships: Encouraging collaboration between the government, private sector, and academic institutions can foster research, development, and innovation in the blockchain and cryptocurrency space, further solidifying the U.S.’s position as a global leader in this field.
-Global Collaboration: Engaging with other countries and international organizations to develop global standards and best practices for blockchain and cryptocurrency technologies can help ensure that the U.S. maintains its influence in shaping the future of these industries.
The U.S. must take swift action to preserve its preeminence in financial markets and related technologies. With the growth of crypto developers in other regions, the U.S. must adapt its strategies and policies to foster innovation, attract and retain talent, and ensure that its interests are protected in the development of new financial and technological standards.
As the report shows, losing developer mindshare early on may make it difficult to recapture mindshare as the blockchain sector grows. The country must act now to preserve its leadership in the blockchain and cryptocurrency industries and to shape the future of global financial and data systems.
