The U.S. government is planning to give a $25 million loan to a bitcoin mining company to build a machine that could power the nation’s next generation of cryptocurrency mining.
According to Bloomberg, the loan was announced Tuesday by U.N. Secretary-General Antonio Guterres and Federal Reserve Chairman Jerome Powell, who said the U.K. would take a 25% stake in a Bitcoin Investment Trust (BIT), an independent company based in the U., to finance the project.
The BIT, according to the Bloomberg article, is expected to begin operations in 2019, and the U .
S. will be the primary investor.
The loan, announced Tuesday, will allow the U to continue its investment in Bitcoin Mining Machines (BMMs), a technology that allows for the creation of the digital currency bitcoin and its subsequent transfer to digital wallets.
The announcement comes after the U government approved a $50 million loan from the Global Fund to Counter terrorism and Financial Crime Initiative (GFCI) to Bitcoin Mining Equipment Inc., a company in California.
In April, the U.’s Commerce Department said it planned to issue $50 billion in new loans to the global financial system to fight money laundering and terrorism.