Johannesburg cryptocurrency exchange AltCoinTrader has added to its platform a bitcoin product linked to the US dollar in an attempt to attract foreign investors and reduce the bitcoin premium in the local market.
Because of dynamic demand and supply, bitcoin tends to trade with a 6% -7% premium in SA, according to Richard de Sousa, partner of AltCoinTrader.
Opening up the market to foreigners, the exchange of three years ago arbitrage operations to reduce the valuation gap
In July, AltCoinTrader added a new trading pair, bitcoin / USDT. The USDT cryptocurrency of Tether, a so-called "stable currency", is backed by US dollars.
"The trading pair is very important because it allows people to buy bitcoins without using the rands," said De Sousa.
expected that the product would end up becoming "highly sought after" when it opened the door to the United States and other investors.
"They will level the price [of bitcoin] and make it more competitive There are huge opportunities for arbitrage.
" It will not happen from one day to the next, but those who see the opportunities and are willing to take them will get huge benefits, and this benefit will be reduced to man on the street because the price of bitcoins in SA will become closer to the international standard. "
It had been" almost impossible "for foreigners to exchange bitcoins in SA, since they would first have to bring money into the country," and there's a lot of bureaucracy around this. "
Naspers-backed Luno exchange does not allow bitcoin purchases in SA usin
De Sousa said that AltCoinTrader has planned to conduct a marketing campaign in the United States in the coming months, after "ironing any knot".
As in other stock exchanges, trading volumes on AltCoinTrader have cooled since the sale of cryptocurrency -off in the early part of 2018.