Leading cryptocurrency exchange Binance has announced a $50 million blockchain technology fund in India, announced the exchange on Tuesday. The move came just weeks after the Supreme Court struck down the ban imposed by the Reserve Bank of India on banking and financial institutions, preventing them from dealing with crypto-related businesses.
Binance along with Indian crypto exchange Wazir, which Binance acquired last year has announced this joint initiative called “blockchain for India” to support the development and growth of blockchain startups in the country.
“When our team visited India last year, we saw that the blockchain startups were witnessing tremendous challenges in fundraising and scaling projects to meet growing consumer demands,” said Binance founder and CEO Changpeng Zhao (‘CZ’).
This $50 million fund will be used to invest in blockchain projects and startups including but not limited to fiat-to-digital assets gateway solutions, trading platforms, payment, and remittance solutions, digital asset wallets, stablecoins, DeFi platforms, and decentralized applications (dApps) by using BNB, BUSD, and WRX up to $5 million.
“We started WazirX with the aim to involve everyone into this technology revolution, and the Blockchain for India fund marks a big step in this direction. India has the biggest tech talent pool in the world. With this fund, we want to encourage and enable more and more founders and teams to come in and BUIDL,” said Nischal Shetty, Founder and CEO of WazirX.
The plan is to partner with venture funds and further provide support to student organizations and universities to accelerate blockchain education in India.
“Let’s invest in India,” said Zhao.
The global blockchain ecosystem of Binance comprises of Binance Chain, Binance Cloud, Binance DEX, Binance Launchpad, Binance Research, Binance Academy, and Binance X. In the past year, the company also acquired Hong Kong-based DappReview and JEX exchange, and San Francisco-based Trust wallet.
But this isn’t’ all, according to Zhao, they “have more new initiatives in our pipeline that we will be coming out within the next few months to help build the Indian blockchain ecosystem from a broader scope, including project funding, technology and talent development.”
The next phase of mass adoption for cryptocurrencies will arise from developing nations like India, according to Binance.
For the past month, the market has been in extreme fear, losing more than $90 billion over the fear of the economic impact of spreading coronavirus (Covid-19) and resulting recession.
However, since the apex court’s verdict in crypto’s favor, companies are outlining their plans to expand and revive their business. According to IAMAI, the total number of verified virtual currency users stands at 1.7 million in India.
“I foresee many other blockchain companies following in our footsteps,’ said CZ.