How entrepreneur-politicians will capture talent and harness the power of crypto to improve their jurisdictions
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No phrase has become more synonymous with Web 2.0 than Silicon Valley. Companies like Facebook, Apple and Google are almost the equivalent of the Bay Area and its walled garden of innovation.
However, 2021 was a turning point in the history of technology. For the first time, the notion of Web 3.0 decentralized and community-supported technology had a chance to topple the centralized giants that have dominated the internet since the late 90s.
With that possibility in mind, developers began to leave Silicon Valley in droves to explore new locales and work alongside crypto-natives who had previously been called outsiders.
While the future of crypto remains uncertain, today there is a great opportunity for Web 3.0 to become decentralized not only when it comes to the underlying technology, but also when it comes to where this industry is built.
As a result, seasoned political leaders from both sides of the party line are leaning on their own entrepreneurial sensibilities and signaling to Web 3.0 innovators a very specific message their respective cities, states and countries are crypto-friendly.
But to make this possible, this new breed of entrepreneur-politician must operate in new and unexpected ways. This is how it looks.
Politicians will have to think and operate like entrepreneurs
In September 2021, El Salvador made history by becoming the first country to make Bitcoin legal tender. President Nayib Bukele thought like an entrepreneur and decided to rely on a new technology to solve a widespread problem helps the approximately 70% of El Salvadorians who lack access to traditional financial services step into the future.
While the volatile nature of Bitcoin and the recent market crash have many questioning the president’s decision and its impact on the country’s economy, El Salvador’s move to embrace Bitcoin was a big step forward for crypto one that helped catapult the notion of DeFi onto a global stage.
In addition, Miami Mayor Francis Suarez has taken on an approach usually reserved for tech entrepreneurs takes to Twitter to engage with a community of like-minded builders and gain their support when it came to his efforts to make Miami a great tech hub.
To date, the mayor has pioneered an experiment called MiamiCoin – a city token designed to drive new community-backed revenue to local government. He’s also helped attract top VC firms and even convinced some of the biggest names in the game to trade the Bay Area for Miami’s beaches.
For Web 3.0 hubs to really take hold outside of Silicon Valley, more politicians and leaders need to think critically about how to attract top builders and crypto companies to their jurisdictions.
Lobbying and education efforts will contribute to the mass adoption of diving
Although lobbying for crypto and DeFi is just getting started, it is already punching well above its weight. Compared to pharma, tobacco and securities and investments industries that have existed for decades spending to support crypto a significant new industry has been significant.
Coinbase, Ripple and the Blockchain Association have been the biggest donors so far, with support from the Blockchain Association growing from $540,000 in Q1 of 2022 to $590,000 in Q2 of 2022 (representing over 60% of total industry spending for Q2).
This support is essential for the widespread use of crypto, as well-thought-out regulations are needed to stabilize the industry and encourage more institutions to take part in investing in digital assets.
Therefore, politicians who can thoughtfully appeal to this fledgling industry and work with Web 3.0 leaders to build the kind of legislative environment that will allow crypto to thrive will have incredible support from a sphere that is set to only grow when it comes to both money and influence.
At the same time, political leaders actively pushing for crypto education and exposure are set to have a leg up when it comes to getting support from top Web 3.0 players.
Reno Mayor Hillary Schieve which is piloting public NFT art projects and a new initiative that will allow the city to publish historical records to the blockchain is focused on offering those living under her jurisdiction frictionless exposure to Web 3.0.
By making the onboarding process easy, Mayor Schieve has a real opportunity to harness the power of crypto and create positive downstream effects for everyone in her city.
Managers must effectively evaluate the promise crypto holds
While the current bear market has shaken up the crypto industry and exposed a number of bad actors in the ecosystem, the fact is that 2021 really showed the world how decentralized technology has the ability to revolutionize the internet as we know it.
The potential impact of crypto has yet to be fully realized. But right now, government officials still have the opportunity to tap into this potential, and their best option is to operate as entrepreneurs themselves by actively welcoming crypto-builders into their jurisdictions and fighting for regulations that preserve the ethos of decentralization. If they don’t, top talent and revenue will inevitably flow elsewhere.
There are still many challenges for entrepreneur-politicians to overcome, especially in light of the negative effects of 2022’s bear market, and so Web 3.0 will need the support of vocal political leaders to help it be fully actualized.
But if crypto and entrepreneurial politicians can find a way to effectively work together, there’s no doubt that the future of Web 3.0 will look just like what was promised to be a culmination of many voices dedicated to building a more just and innovative future.
Simon Yu, CEO and co-founder of StormX, is a crypto and e-commerce expert. He previously worked as a financial analyst at Amazon and senior credit risk analyst for KeyBank. After graduating from the University of Washington in 2014, he participated in a Berkley Blockchain Xcelerator held by the University of California in 2020.
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