At the recent DC Blockchain Summit hosted by the Chamber of Digital Commerce and Georgetown University’s Center for Financial Markets and Policy, Jihan Wu presented the keynote address to the crowd and took the opportunity to announce something big.
According to the Bitmain co-founder, their company has decided to invest in as many as 20 to 30 startups to create “private central banks” that will be powered by blockchain. Their vision is to be able to bridge the world between cryptocurrency and traditional financial systems, like private central banks, in order to create “more convenient user experiences of consumers.”
Elaborated Wu, “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.”
He also reiterated that this is an exciting and, not to mention lucrative, venture, especially because “a central bank is a very profitable business.” Other topics he touched on in his keynote include how fast the growth of the cryptocurrency market is, despite some very limiting beliefs. “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 also reiterated that he does not believe in perfect cryptocurrencies. “There’s no perfect cryptocurrencies on the market, so the market will require more cryptocurrencies.”
On the issue of regulation and tokens, he said that many of the tokens out in the market today will most probably fall under the US SEC’s definition of securities, which would then mean that the trading platforms for these would have to register with the government.
“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.”