You are using an older browser version. Please use a supported version for the best MSN experience.

Jay-Z and Jack Dorsey Give Over $23m Worth of Bitcoin to Cryptocurrency Development Fund

Newsweek logo Newsweek 2/12/2021 Jason Murdock
a close up of a device: In this photo illustration, a visual representation of digital cryptocurrency Bitcoin (BTC) is arranged on a circuit board of a hard drive on January 3, 2021 in Katwijk, Netherlands. © Yuriko Nakao/Getty In this photo illustration, a visual representation of digital cryptocurrency Bitcoin (BTC) is arranged on a circuit board of a hard drive on January 3, 2021 in Katwijk, Netherlands.

Twitter CEO Jack Dorsey announced on Friday he has partnered with American rapper Jay-Z to fund development of the cryptocurrency bitcoin.

As part of the plans, Dorsey said he and the influential hip-hop artist will give 500 Bitcoin (BTC) to a new endowment named ₿trust, with development initially being focused on teams based in Africa and India.

"It'll be set up as a blind irrevocable trust, taking zero direction from us. We need three board members to start," Dorsey said via his personal account.

The value of bitcoin has surged this week after significant investment was made into the digital currency by Elon Musk's electric car company Tesla. As of Friday morning, 500 BTC was the equivalent of $23.6 million, but the value is constantly changing.

An endowment is a donation of money to a non-profit organization that uses the funds to achieve a specific aim, according to a fact sheet from Investopedia.

Broadly, a blind trust is an agreement that gives a trusted partner full control of the fund or its assets, often used to avoid conflicts of interest in the investment

It was not immediately clear what the ₿trust development teams would focus on first. Twitter has been contacted for comment by Newsweek.

At the time of writing, a single bitcoin was valued at $47,427.11, which was up roughly 5.7 percent in the past 24 hours, according to tracking site CoinMarketCap.

Dorsey has long been an advocate of cryptocurrency, specifically bitcoin, often citing its decentralized nature as a factor he is hoping to incorporate into social media.

He tweeted on January 14: "The reason I have so much passion for #Bitcoin is largely because of the model it demonstrates: a foundational internet technology that is not controlled or influenced by any single individual or entity.

"This is what the internet wants to be, and over time, more of it will be. We are... funding an initiative around an open decentralized standard for social media. Our goal is to be a client of that standard for the public conversation layer of the internet."

In October last year, Dorsey's payments firm Square said it had bought approximately 4,709 bitcoins, investing approximately $50 million in the cryptocurrency.

In his post on Friday, the billionaire tech CEO shared a Google Form that people can file an application to become a board member, asking for contact details and proof of work. It said that the mission of the new fund is to "make bitcoin the internet's currency."

While Dorsey's Twitter account has been repeatedly used to promote bitcoin, he is not the only tech industry CEO wading into the cryptocurrency space.

Tesla said in a regulatory filing with the U.S. Securities and Exchange Commission (SEC) this week it would invest $1.5 billion in bitcoin. The company added that it expected to begin accepting bitcoin as a form of payment for its products in the future.

In the days prior to the news, its CEO Elon Musk had used his personal Twitter account to discuss multiple cryptocurrencies, including bitcoin and a joke token built around a 2013 internet meme, dogecoin. Musk confirmed that he is a "supporter" of bitcoin.

Related Articles

Start your unlimited Newsweek trial

AdChoices
AdChoices

More from Newsweek

image beaconimage beaconimage beacon