Yesterday saw the media ban lifted on the case of Christian Bittar, a professional trader who made over $120 million by illegally manipulating key global financial rates. He is currently sitting in a UK prison, awaiting the outcome of his trial. Yes, he has pleaded guilty to these rigging charges.
Yet at the end of the day the financial powers: the big multinational banking corporations, who allowed this to happen, are still very much at large and operating on a daily basis. Sure they have had some hefty fines slapped on them, and rightly so, but just like a mother chastising her child: they will surely try putting their hand back in the cookie jar at some point.
When there is so much money on the table, the temptation to rig the market and manipulate the data can prove just too much for some. Walking down wall street, you don’t have to look too hard to find documented cases of insider trading: some that are still on-going as we speak.
And when you boil it down to the cold hard truth, why would the bank even care? Whatever unscrupulous methods their traders use, it is all a benefit to them. Take the case of Bittar, when in 2011 the FCA came knocking, Deutsche Bank AG, decided to abruptly end all ties with their employee. Even if they may claim they knew nothing about their trader's illegal actions, they still settled with the FCA and paid the fine. You have to admit, if you follow the breadcrumbs is it really that hard to put two and two together?
Surely top banking executives know how their corporation is making so much money. In 2008, they paid Bittar a $125 million bonus, so how could they not?
What does EURIBOR rigging mean for me?
The way you need to look at it, to understand why the world’s central banking system is following a broken path beyond repair - is that these ridiculously high bonuses they pay out are essentially money that is stolen from the average working day citizen. First, let us take a look at what the EURIBOR or LIBOR rate actually means.
The EURIBOR is an acronym for “EURO InterBank Offered Rate” which is the rate used by European banks when lending to each other. When it comes to global finance, much like the LIBOR “London Interbank Offered Rate”, it is a very important interest rate. Due to it being a benchmark the world uses for pricing other financial deals. Basically, it determines the price that we all have to pay to borrow.
You pay your loans, credit cards, and mortgages because you have entered a legally binding contract with that financial institution and in return you expect them to treat you with respect. Not to cheat at every turn in a petty attempt to scalp even more money off you. That is what has happened here, powerful centralized banks have allowed traders to manipulate interest rates to their favor, which in turn has caused mortgages to be more expensive.
You pay your taxes, expecting the government to provide you with the necessary support and protection from the people up in the skyscrapers - but they just laugh at a little fine, which is not going to change the way that massive financial corporations have built their businesses.
Cryptocurrency the solution for an equal financial future?
The way forward is to change the landscape of the monetary and banking world. Here at Rados, we feel the route towards a safer and equal financial playing field is through building a community around cryptocurrency & following the law of the blockchain. However, this is only the first step: the imbalance of power caused by a central organization such as a central bank, an exchange or a development team has to be addressed. The new system that stands up to take its place has to be built in a true by the people and for the people fashion.
That means we can not rely on a centralized entity to govern it and therefore, we have always championed projects that work towards a decentralized future. Take, for example, the popular centralized exchanges used in the cryptocurrency - they have all fallen victim to a hack or a scam, much like the high street trading scandals that you find in the wall street world.
Decentralization is the way forward to a cleaner financial environment
If we take that reasoning into the world of trading, why should you lose out because one trader knew someone that you didn’t or had access to market data before you? There should be no way to manipulate financial data, meaning the next logical step should be for it to exist on the blockchain.
If we continue with our hypothesis, where global financial interest rates would be determined & governed by blockchain technology like Ethereum, then there is no possibility of any tampering. Meaning that no one, not even a multinational corporation, would be able to rig interest rates and steal money from you.
Hope you liked reading our latest article! If you would like to see what a decentralized trading platform really looks like then check our Radex, where you can trade Ethereum tokens entirely on the blockchain.
Would love to hear about what you thought & how you see cryptocurrency shaping up in the future, our community forum is only a click away