Jack Dorsey, CEO of Twitter and the payments platform Square, and rapper Jay-Z announced on Friday (12) that they have teamed up to create a fund dedicated to the development of bitcoin on the African continent and India. There are 500 BTC that the two are investing, worth about US $ 24 million, in the foundation of ₿trust. The entire project will be independent, and none of its creators will have power over decisions.
At first, Dorsey and Jay-Z applied for three positions that will form a council for the endowment. No further details were given on the selection process, but the Twitter CEO posted the application form to his account on the social network. The only description present is that the project’s mission is “to make bitcoin the currency of the internet”.
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 a blind irrevocable trust, taking zero direction from us. We need 3 board members to start: https://t.co/L4mRBryMJe
– jack (@jack) February 12, 2021
Cryptocurrencies suffer restrictions and bans in the region
Dorsey and Jay-Z’s initiative comes at a curious moment. India has already opposed cryptocurrencies, banning exchanges in the country. But now a law banning private cryptography is passing through the Indian Congress on the way to approval.
Meanwhile, African countries are also opposing cryptocurrencies. Nigeria, for example, completely banned digital currencies in early February. Morocco and Uganda have also taken a stand against crypto and applied restrictions.
₿trust would bring incentives to Indian developers
In an interview with TechCrunch, Varun Deshpande, co-founder of the digital bank OnJuno, said: “Although India is the world capital of software development, we have not contributed to the development of the bitcoin core in any significant way.” He also believes that the country has great potential in the area of cryptocurrencies, but it lacks the “right incentives”.
“Today’s initiative (₿trust) is even more significant, as it provides the right incentives for programmers … to have a say in the development of the bitcoin protocol and to bring a diversity of thoughts into defining the future of money. The irony is that while India is preparing a bill to ban bitcoin, the world is turning to our enormous technical talent to protect the cryptocurrency network, ”he concluded.
African governments are against monetary decentralization
The case of Nigeria is somewhat emblematic for the understanding of the resistance that the governments of the African continent present against cryptocurrencies. Last year, more than $ 500 million was traded in digital currencies in the country.
The adoption of cryptoactives by the Nigerian population has only grown in recent years. Bitcoin and other digital currencies are seen as a way of economic freedom in the face of governments seeking to have full control of the financial system used by the population. In addition, cryptocurrencies offer protection against the devaluation of the national currency and facilitate international transactions.
Throughout 2020, a wave of protests hit Nigeria and bitcoin played a very important role in funding the organizers. Many local and international donations were flowing to Protestant groups until the Nigerian government closed bank accounts linked to the organizations.
However, bitcoin and other cryptocurrencies kept crowdfunding activities alive. Thus, the government of Nigeria has been discussing tough restrictions on digital assets in the country. Until February 4, Congress was able to approve the ban on crypto transactions by banks and other financial institutions operating in the country.
With information: TechCrunch