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India has its cryptocurrency Covid-19 aid stuck in red-tape2 min read

August 17, 2021 2 min read

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India has its cryptocurrency Covid-19 aid stuck in red-tape2 min read

Reading Time: 2 minutes

A couple of months ago, when India’s Covid-19 cases surged, Ethereum (a cryptocurrency) co-founder Vitalik Buterin knew he had to do something. He donated almost one billion USD, in crypto, to a Covid-19 relief fund in India. This was to help out families struggling during the pandemic.

But so far, the fund has only given out 20 million of those dollars. What happened to the rest?

Owliver’s Obscure Observation: Ethereum is decentralized. This means that you can use it for payments without revealing your identity! People use ‘keys’ or addresses to make transactions. If you want to know more about cryptocurrency, read our beginner guide here.

Why is this so?

Bitcoin, an alternative to Ethereum. Ethereum is the cryptocurrency donated to India.

When Bituren donated the money, he gave it to India via a cryptocurrency that was very volatile. When news of the donation came out, Ethereum crashed by nearly 50%. This meant that the value of the money was cut in half. Then, India had to go through the tedious process of converting the dollars to Indian rupees. This made the process longer and they are still completing it.

Additionally, the India Covid Crypto Relief Fund, which received this amount, is trying to make sure that the money reaches the grassroots. Therefore, the fund, which was started by Sandeep Nailwal, is taking its time to ensure transparency.

What will it help India with?

The fund is hoping to prepare people for the third wave. If Covid-19 cases continue to rise, the find will donate the 20 million dollars currently in the pipeline to bump up hospital bed supplies.

We all hope that this relief can keep coming for the people who cannot make ends meet.

What else do you think this aid money can be put towards to support people in tough times?

Will this make way for crypto to become the currency of the future?