Ethereum Cofounder Made $1 Billion Donation to India’s Covid-19 Relief Fund, But Only 2% Has Been Utilized
Vitalik Buterin, Ethereum’s cofounder, gave approximately $1 billion to a covid-19 relief fund in May of this year.
The money was donated through a Shiba Inu-themed digital currency. Based on the latest reports, the relief fund has only received about 2% of that initial donation.
Proponents of the cryptocurrency industry often revere it for its reliability, efficiency and speed. But the rate at which Buterin’s donations are being dispersed sheds light on the fact that it’s not exactly a bed of roses.
As Bloomberg reports it, Buterin’s 50 trillion Shiba Inu coins donation has been riddled with challenges.
The first issue is that the donations accounted for 5% of all the digital currency that’s in circulation. Due to this, the event instantly led to a 50% price cash, reducing almost half of its value.
By the time the donations are being cashed out, there’s a good chance that the donation will be valued at $400 million.
Sandeep Nailwal, the business representative behind the Covid Crypto Relief Fund, explained that the process is a little complicated.
Specifically, the Shiba Inu coins have to be exchanged into U.S. dollars currency and then again to Indian rupees. This is the only way to ensure that the transaction doesn’t violate India’s Foreign Contribution Regulation Act.
Nailwal reported that only about 20% of the process is yet to be completed. He said that he’s also been very meticulous to ensure that the donations reach organizations that will truly effect change and help people in need.
Another challenge the fund has encountered is the fact that the Indian government has not been very receptive to the crypto world.
In fact, word on the street is that the government was thinking of effecting a legislation that outlaws the trade. If the bill were to be enacted, mining, trading and even holding cryptocurrencies, such as bitcoin, would all be illegal.
Even though the legislation was brought forward, it didn’t get that far. By June 2021, the government was still looking for a way to regulate the industry.