Christopher Giancarlo, chairman at the Commodity Futures Trading Commission (CFTC), recently said that blockchain technology has “tremendous potential” for the market while also stating that, had we had the technology in 2007-08, regulators could have been much more accurate with their solutions in the wake of the Great Recession.
According to Giancarlo, blockchain technology will not only revolutionize the markets but it will also help regulators spot structural risk. In an interview with Bloomberg, Giancarlo says that regulators could have spotted how over-leveraged Lehman Brothers was, for example, if we had blockchain technology back in 2007.
During that time, financial market regulators had no certain means of assessing the counterparty credit exposure of one large financial institution to another. Instead, regulators were forced to call brokers to understand where the risk premium was — which ended up being woefully inaccurate. These brokers were guessing because nothing was accurately recorded as it should have been.
According to Giancarlo, brokers claimed that Lehman Brothers had 400B in credit-default-swaps protection written against it. As it turns out, this number was actually under 8B. Giancarlo stresses that, had these credit swaps been recorded transparently on a public ledger (blockchain), the complete confusion in the wake of the 2007-08 financial crisis could have been avoided.

Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

Advertorial
Advertorial is the universal author name for all the sponsored content provided by BeInCrypto partners. Therefore, these articles, created by third parties for promotional purposes, may not align with BeInCrypto views or opinion. Although we make efforts to verify the credibility of featured projects, these pieces are intended for advertising and should not be regarded as financial advice. Readers are encouraged to conduct independent research (DYOR) and exercise caution. Decisions based on...
Advertorial is the universal author name for all the sponsored content provided by BeInCrypto partners. Therefore, these articles, created by third parties for promotional purposes, may not align with BeInCrypto views or opinion. Although we make efforts to verify the credibility of featured projects, these pieces are intended for advertising and should not be regarded as financial advice. Readers are encouraged to conduct independent research (DYOR) and exercise caution. Decisions based on...
READ FULL BIO
Sponsored
Sponsored