Economy

CME Group's Leo Melamed: We'll 'Tame' Bitcoin

CME Group's Leo Melamed: We'll 'Tame' Bitcoin”

During the past year, Bitcoin has single-handedly dominated the now $200-billion cryptocurrency market hands-down and has received both - appreciation and serious criticism from well-known personalities from the world of finance.

Last week, CME Group Inc. announced that it will soon offer bitcoin futures trading. This is most likely to bring a lot of liquidity as more investors will participate in the daily trading process without any need to actually own Bitcoins.

Melamed told Reuters that he expects institutional investors to take part in the futures contracts, rather than just speculators, and called the move a "very important step for bitcoin's history". Since the beginning of 2017, the price of bitcoin has gone up more than 500 percent, starting at the sub-US$1,000 level and now surging past the US$6,400 mark, as noted in a CoinDesk report. "We'll tame [bitcoin] into a regular type instrument of trade with rules", he said.

CME meanwhile officially stated it was client interest that drove its decision to support Bitcoin.

With bitcoin futures expected to be available in the current quarter, some industry observers believe it is only a matter of time before a bitcoin ETF hits the market.

In a statement to Bloomberg, CME Group chief executive officer Terrence Duffy expressed his optimism about his firm's upcoming bitcoin futures contract.

Blankfein had said he was "still thinking" about Bitcoin and last week added to his openness to accept what currency could look like in the "new world".

"Given increasing client interest in the evolving cryptocurrency markets, we have chose to introduce a bitcoin futures contract", chairman and CEO Terry Duffy had commented in a press release October 31. "I too went from not believing (in bitcoin) to wanting to know more", he said.

Pundits say blockchain will enable the transfer of assets without a centralized system such as banks and sharply reduce costs of money transfer.

Melamed also says that he has always been supportive of new technological developments.

"My whole life is built [around] new technology". I never said no to technology.

"I'm still that same guy who believes in, at least examining change", he explained.

Six-fold gains in the bitcoin price BTC=BTSP so far this year have stirred a debate among financial professionals on whether the digital currency represents a revolution in financial technology or just another tech bubble.



Like this

Latest


09 November 2017
Moschino's $736 'Dry Cleaning Bag' Dress Is Totally Sheer And Totally Cheeky
Powerhouse fashion house Moschino is now selling spitting-image replicas of the classic dry cleaning bag for a very pretty penny. But if you find it hard to justify spending $900 on a piece of plastic that you likely already have in your closet, don't worry.

09 November 2017
COP23 starts with calls to uphold Paris Agreement
Today, however, during United Nations climate talks, the country announced it would sign the Paris deal. Those were both affected by a powerful El Nino, which can contribute to higher temperatures.

09 November 2017
Dreamworld defends treatment of tiger in viral video
In response to our enquiry, Dreamworld released the following statement from General Manager Life Sciences Dreamworld , Al Mucci. Viewers of the footage were "disgusted" by the situation. "This makes me so sad.

09 November 2017
AIG Hamid Shakeel among three killed in Quetta
Security forces and police have cordoned off the area and launched a search operation besides increasing checking in the city. Abbasi further said cowardly acts such as these suicide attacks show how defeated the terrorist groups have become.

09 November 2017
India's largest denim manufacturer Arvind Ltd to demerge apparel and engineering business
The company said that its apparel business is poised to grow faster and it will put in Rs 1,500 crore to transform the category. The textiles business aspires to reach a revenue of Rs 10,000 crore in the next 5-6 years period, he said.

09 November 2017
Actor Jon Bernthal "Lost All Respect" For Kevin Spacey After Baby Driver
While addressing the claims, Spacey came out as gay and said sorry for what would've been "inappropriate drunken behavior". Still, Bernthal insisted, "No where did I see anything like some of the allegations that have come up against him".

09 November 2017
Egypt reaffirms condemnation of chemical weapons use in Syria
A chemical attack was reportedly launched on Khan Sheikhoun in Syria on April 4 and killed dozens of people. Western countries blamed that attack on the Syrian government, which denied it.

09 November 2017
Red Sox promote LeVangie from bullpen coach to pitching coach
Expectations are high for the Boston Red Sox in 2018, but one member of the Red Sox's family believes the team's new manager can weather the hype. "I'm just thankful for the opportunity".

09 November 2017
More than 2.4 million book ticket for Mars
In an interesting piece of news, it has come to light that around 1,38,899 people from India are going to visit Mars soon. In fact, India ranks the third in the global list with regards to the number of names submitted from a single country.

09 November 2017
Google introduces waiting time for restaurants on Google Search
And by tapping on any of the four bars, you'll see the estimated wait for that time period. The update will arrive to Google search and Maps "soon".



Recommended