Binance in $50 mln Support for Blockchain Growth in India
Binance announced it has joined efforts to support the development and growth of blockchain startups in India with a $50 mln joint initiative “Blockchain for India” with one of the country’s bitcoin exchanges, WazirX which it acquired in 2019.
The fund – to be backed by BNB, BUSD, and WRX digital asset – will be used to incubate and invest in blockchain projects and startups focused on solving industrial and social problems through the use of blockchain technology, its statement says.
The announcement follows a similar and recent move by another cryptocurrency trading platform and liquidity aggregator in India. CoinDCX says it is dedicating $1.3 mln to promote awareness and adoption of cryptocurrencies within the country which recently overturned a two-year banking ban on crypto-related businesses to allow Indian users to purchase cryptocurrencies directly on exchanges with Indian rupee (INR) for the first time.
In the 10 days since the Reserve Bank of India’s banking ban was lifted by a Supreme Court, several developments have taken place in the country’s space including WazirX enabling INR deposits and instant withdrawals to ensure seamless onboarding and offboarding of crypto.
The prospect for cryptocurrency and blockchain growth is very high in India. Despite a population of over a billion, and the growing interest of young Indians in emerging technologies like blockchain, an estimated 0.5% (or five million people) of the population are reportedly active crypto users in India.
CoinDCX sought to achieve a 10x goal of introducing 50 million Indian consumers to cryptocurrency markets through its TryCrypto campaign which is expected to function as a long-term initiative geared towards supporting the cryptocurrency sector’s growth into the future.
“With one of the youngest populations in the world, India requires solutions which are modern and novel for millennials who are looking for better instruments to manage their finances. Crypto is fast becoming a preferred choice for these young, technologically savvy consumers,” says Kashif Raza, the co-founder of CryptoKanoon about CoinDCX’s TryCrypto campaign.
According to WazirX, the fund will make investments in both equity and tokens, ranging from $100,000 to $5 mln. It will also be used to partner with blockchain-focused venture funds in India to support student organisations and universities seeking to set up blockchain technology incubators.
— Nischal (WazirX) ⚡️ (@NischalShetty) March 17, 2020
Selected startup founders and teams will get direct access to Binance’s global blockchain ecosystem comprising of Binance Chain, Binance Cloud, Binance DEX, Binance Launchpad, Binance Research, Binance Academy, Binance X and Binance portfolio companies, such as WazirX, DappReview, Trust Wallet etc.
As the global blockchain company behind the world’s largest digital asset exchange by trading volume and users, Binance has been pushing the agenda of supporting economic growth at local levels thus retaining skills and wealth within rather than taken out.
Binance also recently made its way into Nigeria’s P2P exchange space to compete with the likes of Remitano. Nigeria is one of the largest economies in Africa but with an obvious large market for crypto and blockchain use cases such as remittance. The P2P platform adding support for the Nigerian naira earlier this month makes the currency the first in Africa for buying and selling BTC, USDT, ETH, BNB and BUSD with zero transaction fees with Binance.
Top Chinese cryptocurrency exchange OKEx last month formed a partnership in India too that could see it gain access and open doors to liquidity in one of the world’s fastest growing economies.