Bitcoin, Ethereum and other popular cryptocurrencies are decentralised and are not controlled by single entities.
The current Indian bill for banning of cryptocurrency, experts reckon, may resolve ambiguity on trade in digital money, which is currently neither banned nor legalised in India.
The brief of the current bill said that it would seek to “create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The bill also seeks to prohibit all private cryptocurrencies in India; however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
The Reserve Bank of India barred regulated entities such as banks from allowing trade on crypto exchanges in 2018.
Twitter and Square CEO Jack Dorsey and Tidal CEO Jay-Z are throwing some weight behind bitcoin development. The pair has put 500 Bitcoin into a fund meant to inspire further cryptocurrency development in African countries and India. It’s too bad both regions are actively trying to ban cryptocurrency.
Throw some BTCs on it — The Grammy award-winning rapper and Africa-obsessed Rasputin created an endowment called ₿trust — an unexpected turn for a partnership expected to involve Square’s acquisition of Tidal.
The blind trust won’t be under either mogul’s direction, and they are currently seeking three board members to manage it.
The bare-bones application sets the mission as making “bitcoin the internet’s currency.” Dorsey’s love affair with Africa is now well-documented and nearly cost him his role at Twitter.
Jack Dorsey and Jay Z have created an endowment to fund bitcoin development initially in Africa and India, TechCrunch reported. Jack Dorsey is the CEO of Twitter and Square, and Jay-Z is a rapper. TechCrunch also reported that the two have pledged 500 bitcoin – which is around $23.3 million – toward ₿trust.
On February 11, 2021, @jack tweeted: “JAY-Z/@S_C_ and I are giving 500 BTC to a new endowment named ₿trust to fund #Bitcoin development, initially focused on teams in Africa & India.
It’ll be set up as blind irrevocable trust, taking zero direction from us. We need 3 board members to start:”
There appears to be good reason to focus on teams in Africa. According to TechCrunch, Africa (especially Nigeria) has experienced a surge in cryptocurrency transactions recently.
Dorsey jay africa indiale
It is also looking to create its own digital currency.
“Even though India is the software development capital of the world, we haven’t contributed to bitcoin core development in any significant way,” explained Varun Deshpande, co-founder of OnJuno, which is building a digital banking platform from India for Asian Americans, to TechCrunch.
India plans to introduce law to ban Bitcoin, other private cryptocurrencies
“India always had the skills to contribute but lacked the right incentives. Today’s initiative is even more significant since it provides the right incentives for developers from the world’s largest democracy to contribute and have a say in bitcoin’s protocol development and bring in a diversity of thoughts in shaping the future of money.
Dorsey jay africa indian
One crypto startup founder even nominated Tata Group’s Ratan Tata.
Speaking to ET, WazirX’s Shetty said, “This is a great positive use case of how Bitcoin can help India and Indian software industry progress faster.”
“While everyone is focusing on the 1% negative use case of Bitcoin, what we’re seeing with Jack’s tweet is how easy it is to set up a crypto fund. Almost in an instant, Jack has been able to provide assistance to Indian software developers,” he said.
Ramani Ramachandran, CEO of Singapore-based Router Protocol, a decentralised finance startup, said that Dorsey’s tweet signalled an “inherent awareness” that cryptocurrency cannot be ‘banned’ given the nature of the technology.
Proponents of cryptocurrency are of the view that the digital asset cannot be banned as long as it is not controlled by a single organisation or entity.
Dorsey jay africa indias
Balaji Srinivasan, an angel investor and entrepreneur who previously served as the chief technology officer of Coinbase, earlier this month made a case for why India should embrace bitcoin.
“India has the talent to pull this off. Such a move would make international headlines, attract global support from the world’s technologists and financiers, differentiate India from the increasingly zero-sum economic policies pushed by America and China, and put the country at the forefront of a trillion dollar industry,” he wrote, envisioning the potential unblocking bitcoin would create for India.
An earlier version of this story said Kenya was planning to use bitcoin as a reserve currency. That is not accurate and the error is deeply regretted.
The irony is as India prepares a bill to ban bitcoin in India, the world is turning to our massive technical talent in India to secure and safeguard the bitcoin network.”
Africa, most especially Nigeria, on the other hand, has experienced a surge in cryptocurrency transactions in recent years. Last year, Nigerians traded more than $400 million worth of cryptocurrency on major local crypto exchanges, and the country is only second to the U.S. in terms of volume of bitcoin traded in the last five years.
Africans that trade cryptocurrencies rely on them because they offer protection against currency devaluation and for value exchange during cross-border transactions. In Nigeria, bitcoin trading became ubiquitous last year during the #EndSARS protests that rocked the country.
It‘ll be set up as a blind irrevocable trust, taking zero direction from us,” the Twitter cofounder stated.
JAY-Z/@S_C_ and I are giving 500 BTC to a new endowment named ₿trust to fund #Bitcoin development, initially focuse… https://t.co/qsrkBMuNnv
— jack (@jack) 1613111632000 A single bitcoin is currently trading at $49,500 on cryptocurrency exchanges, which will place the value of the endowment at about $25 million. Dorsey’s bet on the world’s best-known cryptocurrency follows in the wake of similar moves by other high-profile entrepreneurs like Tesla’s Elon Musk as well as global payment giant Master-Card and PayPal in recent weeks.
On Dorsey’s other arm, Twitter has suppressed the Indian farming protests while being a major platform for the #EndSARS movement.
Jay-Z has made various moves to give back to Black people around the world over the years, while also making counterintuitive deals. Most recently, he’s become the face of a cannabis SPAC where he will helm a criminal justice reform project.
India could be a naan-starter — While India is known for its technical prowess, the country has a complicated relationship with blockchain and cryptocurrency technology. Most recently, it’s announced plans to ban investment in private cryptocurrencies, giving investors a grace period to comply.
This news comes as farmers protest the deregulation of their industry which could lead to price-gouging in the sector’s shrinking economy.
The American rapper and record producer has carved out a successful career as a businessman, amassing a billion-dollar fortune in the process.
Until today, his interest in digital money was largely unknown.
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These initiatives come at a time when some of the world’s largest economies, including China and India, are looking to introduce their own digital currency.
Last month, India said it will introduce the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 in the ongoing Budget Session. This is aimed at paving the way for the eventual introduction of digital money by the country’s central bank. China is testing a version of its digital yuan. The Reserve Bank of India did not reply to ET’s emailed queries on the current development.
Indian Crypto Traders Nominate Prominent Board Members
Following Dorsey’s announcement, Indian crypto traders went on Twitter nominating prominent cryptocurrency startup founders — Nischal Shetty of WazirX and Binance CEO Changpeng Zhao — as board members.