CFTC’s Giancarlo Shares How Blockchain Would Have Helped the 2008 Global Financial Crash


The chairman of the U. S. Commodities Futures Trading Commission (CFTC), Christopher Giancarlo, has recently affirmed that the blockchain could have transformed the real-time response that the regulators had to the 2008 global financial crash.

He affirmed this at the 4th Annual DC Blockchain Summit, which is currently happening in Washington DC right now. Giancarlo has affirmed this while inspired by his experience at the time. He was the executive vice president of the GFI Group, a brokerage giant at the time.

According to him, the GFI Group was one of the largest credit default swaps (CDS) trading platforms and people started to panic as the global credit crisis started to get out of control. Trading conditions, according to him, were getting worse by the hour.

The regulators did not have a lot of time and means to solve the problems because of this and the markets started to implode. However, with the blockchain technology, people could have access to a “golden record of real-time ledgers” which would show all the participants. This, he believes, would have helped when the markets were all starting to implode.

Without this technology, the people and agencies involved in the crash had to assemble piecemeal data and to recreate complex portfolios without help, which was not the ideal way to do it, but the only one, unfortunately.

He affirmed that the blockchain usage in Wall Street a decade ago could have at least kept the investors better informed and avoided the disorganized response which was what happened after.

According to Giancarlo, the blockchain, when used together with modern computers and their capacities, could have allowed the regulators to identify patterns and red flags faster and to avoid bank failure, which was more difficult to do back then.

Despite the traditional markets’ hate of cryptos, it looks like they at least know how to value the blockchain, as Giancarlo’s opinions were echoed by the president of JPMorgan Chase, which has also affirmed recently that the next recession may be avoided by using the blockchain.

https://bitcoinexchangeguide.com/todays-top-coin-market-price-prediction-bitcoin-btc-ethereum-eth-ripple-xrp-and-litecoin-ltc/

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