The world’s top financial institution has partnered with a Chinese company to build a massive network of bitcoin miners to mine the virtual currency, a move that would help ensure its financial stability.
Key points:The company has hired former miners to develop its own blockchainThe firm says the technology could help fund infrastructureThe project is being backed by the US governmentThe blockchain could provide “the foundation of the new digital economy”, the firm said in a statement.
“The world needs new forms of economic infrastructure that have the potential to replace old models,” it said.
“These new models need to be transparent, transparently regulated and transparently managed by a centralised authority that has the power to prevent corruption, ensure accountability and control risk.”
The company said the project was being backed “by the US Government through the US Department of the Treasury’s New Development Bank”, which it described as a US-based “non-government-owned financial institution”.
“We are working with a trusted global partner to develop a technology-based, blockchain-based financial instrument that will allow US taxpayers to benefit from the economic prosperity of China,” it added.
It said the blockchain could be used to help fund the development of infrastructure such as electric vehicles, renewable energy projects, internet access and smart cities.
“As we build out the next phase of the network, we look forward to working with other financial institutions, including the Chinese government, to invest in this emerging technology,” the firm added.
China, the world’s second-largest economy, has been heavily investing in blockchain technology, which allows companies to create a new type of digital asset, known as a digital coin.
The blockchain was developed in the US by a team of academics and engineers led by Dr Adam Backman, who now works at the University of Oxford.
It was developed at the start of this year by the company behind the bitcoin blockchain, Digital Asset Holdings, which is run by Chinese billionaire Guo Wengui.
The project was backed by US government, and is being supported by the Federal Reserve Bank of New York and the Federal Deposit Insurance Corporation (FDIC).
It will also be backed by other international institutions such as the IMF, World Bank and the World Trade Organisation.
“China is the most advanced country in terms of the technology and the infrastructure,” said Jeffrey Tucker, chief economist at Bitcoin Investment Trust, a bitcoin investment company.
“There is a lot of momentum in China and China is not afraid to say it.”
China has been working on a blockchain for some time, with the country building out its own digital asset market in 2016.
In June this year, President Xi Jinping announced plans to develop and implement a national blockchain.
He also recently said that China would use blockchain technology “to protect its national sovereignty, territorial integrity, and development of the country’s economic development and economic development of its people”.
The blockchain has also been used to underpin the Chinese bitcoin exchange Huobi, which has been under fire for alleged market manipulation.
China has also introduced new rules to regulate financial transactions between banks and the central bank.
However, this has been met with resistance by some bitcoin supporters, including some who have argued that the rules should apply to bitcoin transactions as well.
The Bitcoin Foundation, a non-profit organisation that advocates for bitcoin and blockchain technology said in October that it was “deeply disappointed” by the announcement.
The group added that the proposed regulations were “unprecedented” and would have a “potentially chilling effect on bitcoin businesses”.
It said it had raised concerns with the US Treasury about “unacceptable regulatory implications”.
The Chinese government said it wanted to see a blockchain “that is transparent, fair, transparent, and safe”.
“This will help build a stronger financial system, reduce corruption and help ensure the national sovereignty and territorial integrity of the People’s Republic of China, and will contribute to the development and development and further development of a new digital asset and digital currency,” it stated.