LMAX introduces trading in virtual currency Ven

Unlike Bitcoin, Ven’s price depends on a basket of currencies, commodities and carbon futures

UK’s FCA regulated LMAX Exchange has announced its introducing trading for an alternative digital currency named Ven starting today according to a blog post on the Wall Street Journal’s website. This virtual currency has been introduced all the way back in 2007 on Facebook and has been actively used by users of invitation-based social network Hub Culture for micropayments since 2009.

Its value is derived from a basket of currencies, commodities and carbon futures. Thomson Reuters is providing quotes for it through its services worldwide. LMAX is the first exchange that becomes interested in quoting pricing for this alternative digital currency. According to LMAX’s CEO David Mercer the decision to offer Ven was reached to respond to demand for trading digital currencies, however we are not sure that this is where this demand targets.

The total amount in circulation is about 1 million Ven which worth about $100,000. The founding director of Hub Culture stated that there have merely been about $3 million in transactions conducted since its inception more than 5 years ago. However he explained that there is a plan to circulate up to 100 million Ven as trading takes off.

Mr. Mercer from LMAX has added that the company expects low volumes initially since this is the first offering of the company in the virtual currency sector. He adds that if things go well with this one other digital currencies might be added to the firm’s offerings. Obviously it is a test bed for future digital currency offerings since the value of Ven is much more stable than Bitcoin for example.

The downside however is that the amount of Ven in circulation appears to be dependent on the central authority that issues the currency – in this case Hub Culture.

For the full report visit the Wall Street Journal’s website.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.

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