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US Square 500 million yen Bitcoin fund, first recipient decided

Cryptocurrency

Aim to improve financial access with Bitcoin

US settlement company Square has launched a new $ 5 million Bitcoin Endowment and announced its first recipient. We will subsidize “Black Bitcoin Billionaire”, an organization that aims to disseminate knowledge about crypto assets (virtual currency) and wealth to black people.

Square is lending Bitcoin purchased as a financial asset of a company to Genesis, which operates a virtual currency lending business, and it is said that the interest will be used to fund the “Bitcoin Fund”.

The “Bitcoin Fund” will be a fund focused on improving financial access through Bitcoin. The aim is to provide grants to organizations and individuals working on financial education and the spread of Bitcoin in various resource-deficient areas of the world.

The company plans to subsidize a variety of projects from $ 5 million quarterly over the next few years, according to people familiar with the matter, and is accepting applications for the Bitcoin Fund online. It is currently unclear how much money has been subsidized for “Black Bitcoin Billionaire.”

Square has also focused on aspects that allow Bitcoin to be financially included, such as allowing people without a bank account to access financial services.

The company has started a program to invest a total of 100 million dollars (about 10.9 billion yen) to improve the situation of people who do not receive minorities and sufficient financial and public services, and this Bitcoin fund is also It’s part of it.

$ 100 Million Project to Support Minorities

“We have decided to invest $ 100 million in minorities and underprivileged communities to promote our goal of financially empowering people,” Square said in the background of the project. The following three goals were set.

  • Support the growth of minority-owned SMEs through financial services.
  • Enhance the ability of Multilateral Development Banks (CDFI) and Ethnic Minority Depositaries (MDI) to lend to local SME owners.
  • Achieve economic empowerment by providing savings and other financial tools to those who do not have a bank account.

Other investment destinations for the project include Netflix-led Black Economic Development Fund and $ 25 million donations to regional development finance institutions (CDFI) and ethnic minority depository institutions (MDI) respectively. It has been. CDFI and MDI are organizations that aim to provide reliable, low-cost financial services to areas where investment has been low.

We also donated 10 million dollars (about 1.1 billion yen) to the “Entrepreneurs of Color fund” that supports minority SME owners. George Ashton, president of the fund subsidiary of the Local Initiatives Support Corporation (LISC), which runs the Entrepreneurs of Color fund, said:

Minority owners have faced higher hurdles in getting loans to start and grow their businesses than white owners. Square’s cooperation addresses this issue, providing liquidity to the market, facilitating funding for innovative entrepreneurs and helping their communities gain financial opportunities. ..

Dorsey also establishes Bitcoin Development Fund

Twitter founder Jack Dorsey, who heads Square, co-founded a fund called “Btrust” in February with renowned rapper Jay-Z. The fund aims to support Bitcoin development, first supporting African and Indian teams. The scale is announced as 500 Bitcoin (current market value is about 2 billion yen).

Relation: Twitter’s Dorsey and Jay-Z jointly establish Bitcoin fund “Btrust” Donate about 2.5 billion yen of Bitcoin

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Author: A. Yamada
Reference: Square, LISC

Images used under Shutterstock license
“Cryptocurrency” means “cryptographic assets”

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