6 Critical Steps the US Must Take to Regain Competitiveness in Crypto
The US blockchain industry is falling behind, and the consequences are becoming more apparent every day. As jurisdictions like Asia rapidly advance, leaders in the crypto space are voicing concerns about the future of innovation in the US.
We’ve seen Asia take bold steps in nurturing talent, improving regulations, and embracing blockchain technology at a pace the US is struggling to match. If the US wants to remain competitive, it needs to act quickly.
In this post, we’ll explore six key areas where the US crypto industry must improve, based on insights from industry leaders and executives.
1. Prioritise Talent Development
One of the biggest issues facing the US crypto industry is a lack of talent development.
Anthony Georgiades, founder of Pastel and general partner at Innovating Capital, believes the US needs to focus on attracting and nurturing blockchain developers. The number of developers is steadily declining, despite growing interest from investors and institutions.
So how can the US turn this around?
Georgiades recommends:
- Funding specialised blockchain training programmes in universities.
- Fast-tracking visa programmes for skilled foreign developers.
- Encouraging public-private partnerships to boost developer initiatives.
- Offering tax breaks and research grants for companies focused on developing blockchain talent.
The US blockchain ecosystem can thrive if we provide the right resources and incentives for crypto talent to stay and grow.
2. A Supportive Banking Community
Without access to banking, it’s tough to build any business — and this is especially true for crypto.
Fiona Murray, managing director of Ripple Asia Pacific, argues that the US banking sector needs to be more open-minded.
In the US, crypto companies often face significant challenges when trying to open or maintain bank accounts. Many firms are simply banned, even though blockchain businesses continue to boom globally.
Imagine starting a crypto business and immediately being restricted by the bank — this is a reality for many US-based firms.
Executives like Ogle, founder of Glue blockchain, point to Asia as a stark contrast. Countries like Singapore, Korea, and Japan have banking systems that embrace crypto innovation, enabling companies to thrive without fear of being cut off.
The US needs to take a leaf from their book if it wants to stay competitive in the global crypto market.
3. Simplify User Experience
The user experience (UX) of blockchain platforms is still a barrier for mainstream adoption. Many people view blockchain technology as overly complex, which slows down adoption.
Erik LaPaglia, chief strategy officer at Propy, suggests the onus is on industry leaders to focus on making UX as simple and intuitive as possible. No one should need to understand the technical details of blockchain to use it.
Here are some tips to improve the experience:
- Focus on two-click interactions.
- Create user interfaces that feel familiar to everyday consumers.
- Educate the public on the practical benefits of blockchain rather than its technicalities.
The more intuitive the blockchain experience, the more people will use it.
4. Embrace Central Bank Digital Currency (CBDC)
The US has been notably slow in the race to develop a Central Bank Digital Currency (CBDC), especially when compared to countries like China.
Anthony Georgiades says that the US needs to dedicate more resources to exploring and implementing a CBDC.
Why is this important?
- It’s essential for staying competitive in the global financial landscape.
- It can help position the US as a leader in digital currency innovation.
- A well-developed CBDC would boost the security and efficiency of the financial system.
There are ways to get ahead:
- Establish a dedicated task force to focus on CBDC research and development.
- Offer public-private partnerships to encourage collaboration between the government and the private sector.
- Provide fiscal incentives for companies working on digital currency projects.
If the US doesn’t act soon, it risks falling behind nations that are already far ahead in this race.
5. Foster Public-Private Collaboration
Public-private collaboration is a crucial driver of blockchain innovation. Countries like Singapore have done this exceptionally well by bridging the gap between government bodies and private companies.
For instance, Singapore’s Project Guardian brings together the Monetary Authority of Singapore and over twenty industry players to experiment with tokenizing real-world assets.
The US should consider similar initiatives to drive the adoption of blockchain technology:
- Provide tax incentives for companies that invest in blockchain research and development.
- Offer grants for companies working on pilot projects.
- Collaborate on standards development to ensure smooth integration and widespread use of blockchain.
By encouraging more collaboration, the US can ensure that its blockchain sector is ready to compete on a global stage.
6. Develop Clear Regulations
Regulation — or rather, the lack thereof — is the biggest issue facing the US crypto industry. Without a clear framework, many firms struggle to operate, and investors remain hesitant.
Industry leaders like Tom Kiddle, co-founder of the Ripple-backed asset custodian Palisade, believe the US should follow the EU’s example by adopting something similar to the Markets in Crypto-Assets Regulation (MiCA).
Why is regulation so important?
- It provides clarity for companies, investors, and developers.
- It reduces the risk of enforcement action from bodies like the SEC.
- It encourages more institutional investment in blockchain technology.
Right now, other regions like Europe and Asia have already set clear guidelines, making them much more attractive to blockchain companies.
The US needs to develop a consistent, transparent regulatory framework if it hopes to remain a leader in the crypto space.
The US has all the potential to dominate the blockchain industry, but it’s clear that we need to act fast to avoid falling behind. From nurturing talent and improving user experience to developing clear regulations, these six areas are critical if the US is to maintain its competitive edge.
By taking inspiration from other regions and acting on these insights, the US can regain its leadership position in blockchain innovation. But without swift action, we risk watching other nations take the lead in this rapidly evolving industry.
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