CME to launch Bitcoin futures contract

World’s largest derivatives exchange, CME Group, is to launch Bitcoin futures by the end of the year
01 November 2017   662

The world’s largest derivatives exchange,CME Group, unveils its plans to launch Bitcoin futures during the fourth quarter of 2017.

The announcement states that the futures will be cash-settled based on the CME CF Bitcoin Reference Rate, a Bitcoin price index it launched last year in partnership with U.K. firm Crypto Facilities.

Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract. As the world’s largest regulated FX marketplace, CME Group is the natural home for this new vehicle that will provide investors with transparency, price discovery and risk transfer capabilities.

Terry Duffy
CME Group chairman and chief executive officer

Assuming regulators grant CME’s application, the exchange will become the second U.S. regulated exchange to offer Bitcoin derivatives to institutional traders. 

Many Wall Street investors have been kept on the sidelines due to the absence of Bitcoin derivatives. The introduction of futures and options contracts is expected to introduce a “wall of liquidity” to the crypto markets.

On top of that, the launch of Bitcoin derivatives means the launch of the first exchange-traded fund (ETF) that tracks the price of bitcoin futures. 

Once a derivative is launched, a bitcoin ETF will follow. That’s the common wisdom.

Don Wilson 
Trading enthusiast

The announcement has already received a great feedback from the community. Charlie Lee, Litecoin creator, called the upcoming launch the "amazing news".

Iranian Central Bank Doesn’t Recognize Bitcoin as Official Currency

The Central Bank of Iran announced that it has never recognized Bitcoin as an official currency and conducts no transactions in it or other cryptocurrencies  
22 February 2018   38

Last year, the Iranian government was interested in utilizing cryptocurrencies as a way of bypassing economic sanctions levied against the country. Today it completely changed its mind. The Central Bank of Iran announced that it will never recognize Crypto as official currency.

The bank informed citizens about risks of making investments because there is a chance to lose financial assets. Currently, the bank is cooperating with other institutions to develop mechanisms to control and prevent the use of cryptocurrencies in the country.

The wild fluctuations of the digital currencies along with competitive business activities underway via network marketing and pyramid scheme have made the market of these currencies highly unreliable and risky.

The Central Bank of Iran

However, there is some positive news. Today, Iran’s Information and Communications Technology (ICT) Minister Mohammad-Javad Azari Jahromi informed about the development of a local cryptocurrency by Post Bank. Unfortunately, the stage of research is not stated.