CME’s Chairman Emeritus just projected it’s only a matter of time before cryptocurrencies like Bitcoin are considered as a new, standalone asset class. This bullish statement comes after the CME’s announcement last week that the exchange will be launching Bitcoin futures in a few days’ time.
Cryptocurrencies are commonly likened to stocks. They’ve also been called money, property, securities, and the “tulips” of our latest 21st-century financial bubble.
But if you’re CME Chairman Emeritus Leo Melamed, cryptocurrencies are clearly a new asset class altogether. And to him, this reality is going to become more self-evident in the months ahead.
Melamed’s comments come with added weight in light of the CME Group’s bombshell anouncement last week that they will soon add Bitcoin futures to the world’s largest options and futures exchange marketplace.
— Reuters Business (@ReutersBiz) November 7, 2017
Melamed told Reuters the plan is to harness the power of Bitcoin and co. as new financial instruments in their own right:
“[It’s] a very important step for bitcoin’s history … We will regulate, make bitcoin not wild, nor wilder. We’ll tame it into a regular type instrument of trade with rules.
“The world in the 1970s didn’t look at currency trading as a valid instrument of finance. I too went from not believing (in bitcoin) to wanting to know more.”
And Melamed would know about currency trading having to gain acceptance. He’s the one who launched the International Monetary Market currency futures trading platform through the CME Group back in 1972.
At a spry 85 years of age, Melamed knows the best way CME can win over institutional investors is to stay ahead of the curve:
“My whole life is built abound new technology. I never said no to technology. People who say no to technology are soon dead. I’m still that same guy who believes in, at least examining change. That’s what bitcoin represents.”
Former CME Chairman’s Comments A De Facto Rebuke of Jamie Dimon’s BTC FUD
JPMorgan Chase & Co CEO Jamie Dimon has suggested that Bitcoin’s a “fraud” numerous times over these past few weeks.
Alas, then, Melamed and Dimon comprise the opposing ends in the traditional finance world regarding opinions on cryptocurrencies—where Melamed sees promise, Dimon sees a threat.
Back in October, Dimon acknowledged that his own daughter owns 2 bitcoins, going on to say regardless that anyone willing to transact in these cryptocoins were making a mistake:
“I could care less what bitcoin trades for, how it trades, why it trades, who trades it. If you’re stupid enough to buy it, you’ll pay the price for it one day.”
Only time will tell if Melamed or Dimon end up being right. But with the seemingly limitless potential of the crypto space, we’re betting on Melamed (and Bitcoin, t00).
What’s your take? Do you think Melamed’s attitude toward crypto will prove infectious for other traditional types in fintech? Let us know where you stand in the comments below!
Images via CNBC, Business Times