See this text from Reuters: https://www.reuters.com/markets/currencies/global-markets-bis-urgent-2022-12-05/
https://www.bloomberg.com/information/articles/2022-12-05/-missing-65-trillion-in-derivatives-dollar-debt-sparks-concern?srnd=premium&leadSource=uverifypercent20wall
Mainly when a monetary establishment desires to speculate overseas, they’ve to hold out a forex swap in order that they’re investing within the nation’s fiat forex. It’s unimaginable exhausting for auditors to maintain monitor of forex swaps. Large blind spot, particularly since forex swaps account for 80 some trillion {dollars}. For perspective, world GDP is roughly 100 trillion and US GDP is roughly 25 trillion.
To be trustworthy, I don’t know why it’s so exhausting to audit forex swaps, however I take the BIS’s phrase on authority with this shot over the bow. I’m not preaching a doomsday thesis, however extra so categorical the chance that one thing may go severely flawed with this example; given how a lot cash we’re speaking about, and people being people and their penchant for corruption, forex swaps could possibly be a supply of misery sooner or later ought to there be unsavory gamers meddling within the pot. We’re not speaking FTX stage cash right here with a couple of billion. Blind spots on the size of some billion is dangerous. Blind spots on the size of tens of trillions would possibly show to be the most important occasion of gross negligence in human historical past. That opens the chance for one thing to go severely flawed.
How do you suppose ethereum may assist clear up this transparency drawback?
