Bitmain, the world’s leading manufacturer of cryptocurrency mining hardware, wants to invest in start-ups. that is not surprising, but what’s surprising is their end goal. They apparently aim to create private central banks on top of blockchain technology.
It is obvious that the terms “central bank” and “cryptocurrency” do not mix very well. In fact, these terms are almost mutually exclusive, especially in a positive way. However, this has not prevented companies from trying to build their own blockchain-based banking solutions. For some reason, Bitmain now aims to provide private central banks on the blockchain. It sounds ambitious, intriguing and disturbing at the same time.
A strange plan for Bitmain
More specifically, anyone who owns cryptocurrency is already their own bank. Central entities do not need to be part of this ecosystem. Despite that, Bitmain co-founder Jihan Wusees a promising future to combine the two worlds. Bridging the gap between cash and cryptocurrency will always be a challenge. A bank based on a blockchain does not necessarily have answers in this regard either.
A private central bank would be better at creating user experiences. Bitmain is very interested in this private central bank model. The company aims to issue private cryptocurrency as a service that is certainly interesting. At the same time, we do not really need more cryptocurrences that are useless. Everything related to a bank of any kind will be examined and ignored, for rather obvious reasons.
For the moment, Bitmain will look for several dozen start-ups to invest. How all this will play exactly, remains to be determined. It is obvious that the current central banks are unable to carry out their normal tasks.
Moreover, the average consumer does not trust these institutions either. The role that Bitmain intends to play in this respect is not yet clear. Exploring new businesses is always positive, but this idea raises a lot of questions.