Globitex, a new bitcoin exchange co-founded by Jon Matonis, will be allowed to carry out payment services bitcoin european union e-money issuance in the EU. Ready to start building Dapps?
Dive deep into blockchain development. Is Bitcoin a Good Investment? Bank of Lithuania, a regulatory authority in the European Union, to carry out payment services and e-money issuance in the EU. According to the company, this regulatory development opens the way for the institutional- grade bitcoin exchange to deal with EUR fiat payments globally and sets a new level of legitimacy for the cryptocurrency industry overall. It also represents a significant step toward widespread adoption of Bitcoin as a unit of account suitable for global trade, with no geographic, political or monetary restrictions. Eventually, Globitex wants to allow producers to purchase exchange-listed products for bitcoin, and trading firms, and speculators to hedge their risks in bitcoin with derivatives trading.
Globitex wants to tackle this challenge by dramatically increasing bitcoin trading volumes and facilitating bitcoin’s use across the spectrum of money and commodity markets, thereby allowing financial instruments and commodities like crude oil, gold and coffee to be priced directly in bitcoin. Strong connection to the spot markets, including contract limits and physical delivery that is linked to provisioned commodities, will serve as the market standard for price integrity. Matonis outlined some risks associated with cash-settled bitcoin futures contracts. 100 percent so there is no real leverage during volatility, and there is a risk of limit-up, limit-down insolvency for certain smaller members. According to Matonis, the cash-settled bitcoin futures contract is a precursor to an exchange offering a proper physical-settlement futures contract like Globitex. In fact, decentralized crypto and physical-settlement Bitcoin markets will be more robust, Matonis explained to Bitcoin Magazine, since warehousing, open-contract limits and maintenance-margin calculations all behave differently under a digital assets class with physical settlement.