Cryptocurrencies remain of great interest to existing financial service providers. Purple Group in South Africa has added Bitcoin and Ethereum to its trading platform. Users can buy these currencies or open short positions.
Purple Group Taps Into Cryptocurrency
The decision by Purple Group to add Bitcoin and Ethereum is rather surprising. The online trading platform has been very successful over the years without using cryptocurrency. Allowing clients to buy Bitcoin and Ethereum with rand is a big decision. Additionally, users can short both currencies. That latter option may prove to be popular given the current market conditions.
A lot of cryptocurrency users have become less bullish on Bitcoin and Ethereum. The continual sell-off in the market is not helping matters much. Clients of Purple Group have repeatedly demanded exposure to these top cryptocurrencies over the past few months. As such, the firm is catering to its clients’ needs. A lot of consumers in South Africa have shown an increased interest in cryptocurrencies during Q2 2018.
Other banks in South Africa are weighing their options related to Bitcoin as well. The trading of cryptocurrencies itself is not on the agenda at this time. First National Bank is still exploring sustainable options in this regard. Given the current market volatility, holding off on that decision seems warranted. FNB can also gauge how Purple Group’s offering is received prior to launching its own products and services.
South Africa Remains Crypto-Friendly
Buying Bitcoin and Ethereum is relatively easy in South Africa. Various local exchanges provide this functionality at this time. Even international brokerage houses offer exposure to various cryptocurrencies. All of this renewed attention is bound to have a positive impact on the Bitcoin industry as a whole.
Allowing clients to short cryptocurrencies is a double-edged sword. In the short-term, it can lead to even more market volatility. CBOE’s Bitcoin futures contracts are considered partially responsible for the 2018 price decline so far. That has never been officially verified and proven, though. It will be interesting to see how Purple Group affects both currencies moving forward.
According to Purple Group trading specialist Barry Dumas, cryptocurrency markets are bound for some stability. Clients have grown more accustomed to this new paradigm of money in recent months. Regulators in South Africa are actively trying to foster cryptocurrency growth in the country as well. These joint efforts are designed to bolster the Bitcoin ecosystem once and for all. So far, it has not made any positive impact on the price yet.
What do you think about Purple Group adding Bitcoin and Ethereum to its platform? Let us know in the comments below.
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