El Salvador delivers major win for crypto. What next?

In a major push for cryptocurrency regulation, Central American country El Salvador became the first in the world to recognise Bitcoin as an official legal tender.

Thursday June 10, 2021 , 4 min Read

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In a major push for cryptocurrency regulation, Central American country El Salvador became the first in the world to recognise Bitcoin as an official legal tender. It also announced that people who invest in bitcoin in El Salvador will get citizenship of the country.

Avinash Shekhar, Co-CEO, ZebPay, a cryptocurrency exchange, said, “This is a historic moment. The code (bitcoin) Satoshi wrote is now a legal tender of a country. Bitcoin is the soundest asset and one of the biggest technological innovations the world has ever seen."

Meanwhile in India, in a move that was welcomed by the Indian cryptocurrency and blockchain industry, the Reserve Bank of India (RBI) issued a clarification last month on the use of conventional bank accounts in the trade of cryptocurrencies.

The clarification from RBI came after many Indian banks continued to cite an earlier RBI circular banning banks from dealing in crypto, despite the Supreme Court’s March 2020 ruling lifting the cryptocurrency trading ban. This prompted the country’s apex bank to issue a clarification on the invalidity of the circular given the SC’s ruling.

Indeed, for the fast-growing cryptocurrency industry to realise its full potential in India, a clearly articulated regulatory framework governing crypto exchanges, startups, and assets in the country is crucial, say experts, including Rameesh Kailasam, CEO of IndiaTech.org - an industry body that was established by and represents India's consumer internet startups, unicorns, and investors.

He told YourStory, “India has regretted missing the bus in terms of hardware and semiconductor chip manufacturing and other technology innovation. We shouldn’t miss the bus with crypto and blockchain. The industry is fast-growing and it should be embraced with checks and balances in place.”

Indeed, India’s nascent blockchain ecosystem is fast-growing and has caught the attention of global investors. For example, serial startup investor and American reality TV host Mark Cuban recently invested in blockchain startup Polygon — Ethereum’s internet of blockchains.

The startup's MATIC tokens also entered the list of top 20 cryptocurrencies worldwide in market capitalisation, turning its co-founders into India’s first crypto billionaires.

The Interview

Amid the second wave of the COVID-19 pandemic, Young Warriors plans to engage 5 million young people in 90 days and impact 50 million families in the country.

Madan Padaki, Strategic Advisor, YuWaah, UNICEF India; Chetan Kapoor, Chief Operating Officer, Tech Mahindra Foundation; and Ashutosh Verma, a Zoology student at Jammu Central University talk about how the Young Warriors are tackling the COVID-19 crisis.

Editor’s Pick: 100X Entrepreneur Podcast

For Paras Chopra, Founder and Chairman of Wingify, his first experience of making money was when he was 12 or 13 years old by building software in Visual Basic and C++.

This interest led him to found SaaS startup Wingify in 2009, Wingify’s flagship product includes a website testing platform product. Its flagship product includes a website testing platform product VWO. Read more.

Startup Spotlight

An online marketplace for healthy snacking and eating needs

According to Mintel, one in five Indians snacks three times a day or more as the majority of the workforce is now working from home. This has led to a rise in demand for healthy snacking options post the pandemic.

Started by first-time entrepreneurs Shreya Shah, Shashank Kutty, and Saurabh Mishra, Reyfeber serves as an online marketplace for healthy snacking and eating needs. It aggregates 1,200+ snacking options from 65-odd brands from across India. Read more.

Reyfeber snapshot — *Infographic: YS Design*

News & Updates

Airbnb, EaseMyTrip, OYO and Yatra, have come together to launch Confederation of Hospitality, Technology and Tourism Industry (CHATT) to empower small operators and build the right framework for India's resilient tourism industry.

Bengaluru-based edtech startup Masai School has announced the acquisition of the design institute Design Shift Academy. The company stated Design Shift will continue to focus on its own goals and operate under its own umbrella post the acquisition.

Mobile payments solution provider Mswipe announced a hybrid credit score in partnership with Equifax to help banks, financial institutions, and NBFCs better assess MSMEs for credit solutions. It includes data such as transaction variables, merchants customer profile, loyalty base, etc.

Mars Inc pledged critical medical equipment worth $2.3 million (over Rs 16 crore) for India, as part of its ongoing efforts towards COVID-19 relief in the country. The initiative will be carried out in partnership with Oxfam, CARE, and Business Fights Poverty Crown Agents.