A couple of months back, Ethereum co-founder Vitalik Buterin donated cryptocurrencies worth $1 billion to an Indian COVID crypto relief fund. Out of that, $20 million has been disbursed so far. That is around 2% of the total amount.
Sandeep Nailwal, founder, India Covid Crypto Relief Fund, explaining the deficit, said that the traditional financial systems currently do not support cryptocurrencies yet. So to make them usable, one will have to convert cryptos into fiat currencies.
He further added, “Between cashing out of an illiquid asset, complying with government regulations, and getting the money to the right places, it isn’t easy.”
Nailwal also said that Buterin’s 50 trillion Shiba Inu coins halved in their value due to a 50% crash in price and now they are worth around $400 million.
Elaborating more about the delay, he said that the fund has to gradually convert crypto tokens into dollars and then rupees to comply with India’s foreign contribution regulation act. According to him, the work is 80% complete.
Most importantly, Nailwal said that he wanted to ensure the money is reaching the needy, so he’s cautious in the disbursements. However, he has paid $20 million so far, and another $20 million is in the pipeline. Also, he is planning to hire an audit firm to ensure complete transparency.
Nailwal said that the fund is now focused on the next possible resurgence. Till now, the Indian COVID crypto fund has made donations to organizations distributing food across the country and setting up ICU beds.