The chairman and founder of ‘Interactive Brokers’, the electronic brokerage firm, claimed that Bitcoin is a great idea, but it has better to stay away from the “real economy.”
According to CNBC, Thomas Peterffy, the billionaire as known as ‘the father of high-speed trading,’ clarified he isn’t against trading the digital currency. “I think cryptocurrencies are a great idea.”
But, earlier this week the American entrepreneur sent a letter to chairman of the Commodity Futures Trading Commission, J. Christopher Giancarlo. He warned him about the dangers associated with the digital currency.
In the letter he writes:
We are seeking proposals that are able to allow Bitcoin and other cryptocurrency derivatives to be cleared in the same clearing organization, the way other products are.
More specifically, he awaits that the Commission requests any clearing organization in order to clear any cryptocurrency to do so in a separate clearing system.
He believes there is no fundamental basis for the valuation of not only Bitcoin but the cryptocurrency market as well. This is due to the fact that Bitcoin’s price has raised by approximately 1,000 percent in 2017.
The billionaire expressed his fears related to the digital currencies
Digital currencies do not have a regulated mature and tested underlying market. The markets and their products have existed for less than 10 years.
Mr. Peterffy statements were also an answer to the news from CEO and chairman of CME Group, Terry Duffy. The last admitted that a Bitcoin futures is awaiting regulatory approval. It would be launch by the end of the year.
Peterffy mentioned that this could ‘destabilize’ the system. He thinks a possible destruction in the cryptocurrency market could destabilize a clearing organization. This could lead to the destabilization of the real economy. There is a way to prevent this, by putting cryptocurrencies away from other products, in a separate clearing system.
More analytically he said:
“The CME (Chicago Mercantile Exchange) or any other clearing organization should not clear a digital currency together with other products. Then a large digital currency price move that destabilizes members that clear digital currencies will destabilize the clearing organization itself”.