The mining hardware company Bitmain announced on Wednesday that it plans to invest in at least 30 startups, which are working to create private central banks backed by Blockchain technology.
Co-founder Jihan Wu gave the opening speech at the DC Blockchain Summit, organized by the Digital Chamber of Commerce and the Center for Financial and Policy Markets at Georgetown University.
During his speech, Wu spoke about the differences between central banks that support fiat currencies and the growing abundance of cryptocurrencies around the world. However, the highlight of this speech was the revelation that Bitmain intends to invest in around thirty new companies that work to unite these two concepts.
In his arguments, Wu mentioned that a private central bank, different from institutions like the Federal Reserve, "is better to create more convenient user experiences for consumers".
"At Bitmain we are very interested in new companies from private central banks that are going to use Blockchain technology to issue private currencies and establish it as a service in a legal way. We would like to invest in twenty to thirty new companies whose efforts are focused on this unique emerging economy, "explained Wu.
In other words, he also acknowledged the lucrative potential these companies can have, highlighting the income obtained by the FED and pointing out, "we all know that a central bank is a very profitable business".
The statements of his co-founder, make see the great ambitions of the company, which is also investigating applications in the area of artificial intelligence.
In addition, the momentum in the issue of private central banks, is just in the search for Bitmain to expand its mining brand to Canada.
He also referred to the idea that the cryptocurrency market would consolidate around a few notable cryptocurrencies, which would lead to the rapid growth experienced by some networks.
"The fact is that the Bitcoin domain has been declining and we see that many other cryptocurrencies like Ether and Dash are growing very fast, and one can not explain if he thinks the theory is correct that the market will consolidate," Wu said.
Within his speech, he referred to the fact that there is no perfect cryptocurrency and that is why there is a demand for numerous other options in the market.