Bitcoin has been on the radar of lots of consumers and enterprises as of late, and CME Group wants to strengthen that position by publishing the Bitcoin market price in real time. Dubbed the Bitcoin Real Time Index, this project is scheduled to launch later in 2016.
CME Group and The Bitcoin Real Time Index
As the name suggests, the Bitcoin Real Time Index will display the current Bitcoin market price at all times, based on global demand to buy and sell cryptocurrency. Moreover, the Bitcoin price will be denominated in US Dollar, and all of the calculations will be handled by Crypto Facilities, a London-based digital assets trading platform.
Undertaking such a significant project will not be an easy task, though, but CME Group feels comfortable they can update the Bitcoin price every second. But that is not all, as the company is also planning to publish a daily settlement price, which the company calls the Bitcoin Reference Rate. Similar to the market value, this price is also denominated in US Dollar.
Finding the current Bitcoin price from a reliable source is rather difficult for most consumers and enterprises these days. There is a wide variety of solutions available to figure out the current Bitcoin price in US Dollar, which is why CME Group wants to offer this type of functionality by the end of this year.
To calculate the current Bitcoin market price, CME Group and Crypto Facilities will use the spot price of various exchanges around the world, including Kraken, Coinbase, and Bitstamp. A full list of exchanges was not provided to us at the time of publication.
Last but not least, both parties plan to team up with Imperial College London to develop a code of conduct for Bitcoin Reference Rate participants. Maintaining the integrity of the daily settlement price is of the utmost importance for this project, and that code of conduct will go a long way to ensure exactly that.
Source: News Tip Via Email
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