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
Principally when a monetary establishment needs to speculate overseas, they’ve to hold out a foreign money swap in order that they’re investing within the nation’s fiat foreign money. It’s unbelievable laborious for auditors to maintain observe of foreign money swaps. Large blind spot, particularly since foreign money swaps account for 80 some trillion {dollars}. For perspective, international GDP is roughly 100 trillion and US GDP is roughly 25 trillion.
To be trustworthy, I don’t know why it’s so laborious 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 likelihood that one thing might go severely 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 might 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 likelihood for one thing to go severely mistaken.
How do you assume ethereum might assist remedy this transparency drawback?
