“Crypto is the future of money,” Coinbase emphasizes in its latest report, “The State of Crypto”. It notes that during the first quarter of 2024, Fortune 100 companies announced a record number of blockchain and Web3 initiatives. However, the biggest obstacle for them was the lack of reliable specialists and the necessary skills. In addition to this, the declining share of American crypto developers further aggravates the situation. Currently, only one out of four developers is from the United States, which is 14% less than in the last five years. But despite this, interest in blockchain technology remains high.
Crypto Helps to Update the Financial System
Coinbase draws attention to a significant reduction in the number of crypto developers in the United States. Executives of Fortune 500 companies are concerned about the lack of reliable specialists, seeing this as a bigger obstacle to the introduction of cryptocurrencies than regulatory issues.
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At the same time, small businesses are interested in finding cryptocurrency-savvy candidates for future positions in technical, financial, and legal departments. About 68% of respondents believe that blockchain and cryptocurrencies can solve financial problems such as processing time and transaction fees.
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“The market infrastructure on which we have been issuing, trading, and wrapping assets into portfolios is 50 years old… What we are starting to see with blockchain technologies is that there are ways to improve that tremendously. There are ways to cut processing times, get more real-time information, and enable 24/7/365 trading because we live in a global world where our businesses operate around the clock.” said Sandy Kaull, Franklin Templeton’s head of digital assets.
Volodymyr Nosov, CEO of WhiteBIT, shares similar views, noting: “Despite the volatility, Bitcoin is gold for the new generation. Young investors won’t invest in gold, they believe in the digital age […] Blockchain is the future that needs to be understood.”
Coinbase notes that recent years have been a period of experimentation with on-chain, but technology and financial companies have found the best formula between product and market. In the first quarter, these two sectors accounted for 8 out of 10 on-chain initiatives, which shows an upward trend compared to 2023, when they accounted for almost 6 out of 10.
In addition, interest in using on-chain technology for customer transactions extends not only to financial companies, but also to the retail, healthcare, and consumer goods industries. These include:
- Exploring crypto as a form of payment for remote or global region
- Implementing play-to-earn mechanics to enhance the video game experience
- Letting healthcare patients and customers use digital wallets to pay for products and service
- Accepting healthcare donations in crypto
- Blockchain- and NFT-based restaurant loyalty programs
Read Also: Coinbase Sees Over $1 Billion Ethereum Outflow Amid Market Speculation
Rising Interest in Using Stablecoins
After that, Coinbase analyzes how stablecoins are gradually beginning to play an increasingly important role in the global economy. In the first quarter of 2024, the daily volume of stablecoin transactions broke records and reached $150 billion.
Stablecoins mitigate the volatility of popular cryptocurrencies such as Bitcoin, making them more suitable for daily transactions. They are widely used for cross-border payments and trading in other cryptocurrencies.
More than 50% of the surveyed companies noted that the introduction of stablecoins could open up new business opportunities. The relative stability of the stablecoins makes them attractive for companies seeking to avoid the fluctuations typical of other cryptocurrencies. Another reason for the attractiveness of stablecoins is low transaction fees and faster processing times.
Pegah Soltani, Head of Payment Products at Ripple, similarly spoke about cross-border payments worldwide. She explained that payment standards vary greatly from country to country. For example, using SWIFT or TIPS in Europe and FedNow in the US requires different protocols, limiting data quality and detail.
As a result, these systems operate as closed networks that interact inefficiently with each other, requiring significant manual intervention and ultimately leading to an unsatisfactory payment experience.
According to Coinbase, the efficiency and cost-effectiveness of cryptocurrency transactions are compelling arguments in favor of their implementation. In addition, 76% of small businesses express interest in cryptocurrency’s potential benefits, indicating a broad willingness to explore these technologies.
Compass Coffee, mentioned by Coinbase in its report, is already actively implementing payments in stablecoins. With many customers switching from cash to cards, the company said it was tired of paying high transaction fees, funds that could be reinvested in the business. That is why it started offering stablecoins as an alternative payment method.
“Accepting crypto payments could be transformational for our business. We hope to help transform retail experiences by accepting USDC” said Michael Haft, Compass Coffee Founder and CEO
Summary
Coinbase’s State of Crypto report emphasizes the importance of cryptocurrencies as the future of money. The first quarter of 2024 showed a significant increase in blockchain and Web3 initiatives among Fortune 100 companies, despite the lack of qualified specialists and the decline in the share of American crypto developers. However, despite these challenges, interest in blockchain technology remains high.
Read Also: Meta, Coinbase, Ripple, and More Companies Join Forces to Fight Technology Fraud
