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 needs to speculate in a foreign country, they’ve to hold out a foreign money swap in order that they’re investing within the nation’s fiat foreign money. It’s unimaginable exhausting for auditors to maintain monitor of foreign money swaps. Large blind spot, particularly since foreign money swaps account for 80 some trillion {dollars}. For perspective, world GDP is roughly 100 trillion and US GDP is roughly 25 trillion.
To be sincere, I don’t know why it’s so exhausting to audit foreign money 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 specific the chance that one thing might go critically mistaken with this example; given how a lot cash we’re speaking about, and people being people and their penchant for corruption, foreign money 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 just a few billion. Blind spots on the size of some billion is unhealthy. 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 critically mistaken.
How do you suppose ethereum might assist resolve this transparency downside?
