Today, Bitmain announced it was willing to invest in more than 30 startups working to invent “private central banks” supported by blockchain.
During the DC Blockchain Summit, hosted by the Chamber of Digital Commerce and Georgetown University’s Center for Financial Markets and Policy, Bitmain’s co-founder Jihan Wu compared the differences between central banks backing fiat money and ever-expanding multitude of different cryptocurrencies.
Bitmain’s investment aims to bring the corporate and cryptocurrency worlds together. As they are saying, a private central bank different than other current institutions such as the Federal Reserve “are better at creating more convenient user experiences for consumers.”
M. Wu mentioned:
“We at Bitmain are very interested in private central bank startups that are going to use blockchain technology to issue private currencies and set it as a service, in a legal way. We would like to invest in 20 to 30 startups whose efforts are focused on this unique emerging economy.”
Bitmain is also working on two upcoming projects; expanding its mining business and developing applications in the artificial intelligence industry.
Jihan Wu doesn’t believe that only a few selected coins will survive in the long run. His argument is that there is a large demand in many different sectors for blockchain applications.
“The fact is that bitcoin’s dominance has been declining and we see that lots of other cryptocurrencies like ether and dash grow very fast, and you just cannot explain if you think the theory is right that the market will consolidate,” he said.
He also mentioned there was no “perfect” cryptocurrency: “There’s no perfect cryptocurrencies on the market, so the market will require more cryptocurrencies.”
Wednesday, the U.S. Securities and Exchange Commission (SEC) said that trading platforms offering exchange services for ICO-derived tokens would absolutely need to register with the government if they are condemned to be securities.
Jihan Wu believes many other coins will eventually be securities:
“Most tokens will very likely fall into the definition of a security and will be subject to the regulation of a security[…] But I believe regulators need to prepare a good answer on how to deal with such business innovations.”